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

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Bristol Myers Squibb (BMY) closed at $73.02 in the latest trading session, marking a +0.21% move from the prior day. This move lagged the S&P 500's daily gain of 1.46%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.

Prior to today's trading, shares of the biopharmaceutical company had lost 6.84% over the past month. This has lagged the Medical sector's loss of 3.17% and was narrower than the S&P 500's loss of 6.94% in that time.

Bristol Myers Squibb will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2022. On that day, Bristol Myers Squibb is projected to report earnings of $1.90 per share, which would represent a year-over-year decline of 1.55%. Our most recent consensus estimate is calling for quarterly revenue of $11.52 billion, down 1.55% from the year-ago period.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $7.56 per share and revenue of $46.33 billion. These results would represent year-over-year changes of +0.67% and -0.12%, respectively.

Investors should also note any recent changes to analyst estimates for Bristol Myers Squibb. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Bristol Myers Squibb currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Bristol Myers Squibb is holding a Forward P/E ratio of 9.64. Its industry sports an average Forward P/E of 19.81, so we one might conclude that Bristol Myers Squibb is trading at a discount comparatively.

Investors should also note that BMY has a PEG ratio of 1.55 right now. 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 1.03 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 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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