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Bristol Myers Squibb (BMY) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 mins read

Bristol Myers Squibb (BMY) closed at $59.20 in the latest trading session, marking a +0.82% move from the prior day. The stock lagged the S&P 500's daily gain of 1.8%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 2.33%.

Heading into today, shares of the biopharmaceutical company had lost 2.21% over the past month, outpacing the Medical sector's loss of 2.81% and the S&P 500's loss of 6.31% in that time.

BMY will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2020. In that report, analysts expect BMY to post earnings of $1.48 per share. This would mark year-over-year growth of 26.5%. Our most recent consensus estimate is calling for quarterly revenue of $10.39 billion, up 72.96% from the year-ago period.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $41.92 billion. These results would represent year-over-year changes of +33.05% and +60.34%, respectively.

Investors might also notice recent changes to analyst estimates for BMY. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. BMY currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 9.4 right now. This valuation marks a discount compared to its industry's average Forward P/E of 24.78.

Also, we should mention that BMY has a PEG ratio of 1.09. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.

To follow BMY in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research