In the latest trading session, Bristol-Myers Squibb (BMY) closed at $60.89, marking a +1.13% move from the previous day. This move outpaced the S&P 500's daily loss of 0.34%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, lost 0.69%.
Investors will be hoping for strength from BMY as it approaches its next earnings release. In that report, analysts expect BMY to post earnings of $1.46 per share. This would mark year-over-year growth of 23.73%. Our most recent consensus estimate is calling for quarterly revenue of $9.96 billion, up 58.78% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.14 per share and revenue of $41.58 billion. These totals would mark changes of +30.92% and +59.02%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BMY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. BMY currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, BMY is holding a Forward P/E ratio of 9.81. For comparison, its industry has an average Forward P/E of 15.21, which means BMY is trading at a discount to the group.
Investors should also note that BMY has a PEG ratio of 1.17 right now. 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. BMY's industry had an average PEG ratio of 2.02 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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