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Bristol-Myers Squibb (BMY) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Caterpillar (CAT) closed at $133.71 in the latest trading session, marking a -0.49% move from the prior day.

Bristol-Myers Squibb (BMY) closed the most recent trading day at $49.21, moving -0.78% from the previous trading session. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.07%.

Coming into today, shares of the biopharmaceutical company had lost 3.43% in the past month. In that same time, the Medical sector gained 2.03%, while the S&P 500 gained 2.14%.

BMY will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2019. On that day, BMY is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 13.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.80 billion, up 11.67% from the year-ago period.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $4.16 per share and revenue of $23.86 billion. These results would represent year-over-year changes of +4.52% and +5.75%, respectively.

It is also important to note the recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. BMY currently has a Zacks Rank of #3 (Hold).

In terms of valuation, BMY is currently trading at a Forward P/E ratio of 11.92. This valuation marks a discount compared to its industry's average Forward P/E of 15.29.

Also, we should mention that BMY has a PEG ratio of 2.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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