This new firm still has appeal

Article Excerpt

EMBECTA CORP. $18 is still a buy. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares o/s: 57.3 million; Market cap: $1.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.3%; TSINetwork Rating: Average; www.embecta.com) took its current form in April 2022 when Becton Dickinson (see left) spun off its Diabetes Care business. Investors received one share of embecta for every five shares of Becton they held. embecta is down 60% since the split, partly due to fears that new weight-loss drugs like Ozempic will hurt its sales. However, these new drugs delay the need for insulin treatments but do not eliminate them. Moreover, the stock trades at an attractive 9.0 times the $2.00 a share the company will probably earn in the fiscal year ending September 30, 2024. The $0.60 dividend looks safe and yields 3.3%. embecta is a buy. buy…