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

Zacks Equity Research

Bristol-Myers Squibb (BMY) closed the most recent trading day at $50.52, moving -0.1% from the previous trading session. This move lagged the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.06%.

Coming into today, shares of the biopharmaceutical company had gained 5.66% in the past month. In that same time, the Medical sector gained 1.37%, while the S&P 500 gained 3.23%.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be October 31, 2019. On that day, BMY is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 2.75%. Meanwhile, our latest consensus estimate is calling for revenue of $5.83 billion, up 2.36% from the prior-year quarter.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $4.29 per share and revenue of $24.07 billion. These results would represent year-over-year changes of +7.79% and +6.69%, respectively.

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

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% higher. BMY is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, BMY currently has a Forward P/E ratio of 11.79. This valuation marks a discount compared to its industry's average Forward P/E of 14.33.

Also, we should mention that BMY has a PEG ratio of 2.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.05 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% 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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