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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 $61.83 in the latest trading session, marking a +0.02% move from the prior day. The stock lagged the S&P 500's daily gain of 1.64%. Meanwhile, the Dow gained 0.88%, and the Nasdaq, a tech-heavy index, added 2.56%.

Coming into today, shares of the biopharmaceutical company had gained 6.06% in the past month. In that same time, the Medical sector gained 2.53%, while the S&P 500 gained 2.44%.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be November 5, 2020. In that report, analysts expect BMY to post earnings of $1.49 per share. This would mark year-over-year growth of 27.35%. 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.

Any recent changes to analyst estimates for BMY should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 9.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 27.02.

It is also worth noting that BMY currently has a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% 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.

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


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