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

Zacks Equity Research
·3 min read

In the latest trading session, Bristol Myers Squibb (BMY) closed at $62.46, marking a +0.19% move from the previous day. This move lagged the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.84%.

Coming into today, shares of the biopharmaceutical company had gained 0.53% in the past month. In that same time, the Medical sector gained 2.45%, while the S&P 500 gained 2.12%.

Investors will be hoping for strength from BMY as it approaches its next earnings release. On that day, BMY is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 11.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.57 billion, up 32.98% from the year-ago period.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $6.35 per share and revenue of $42.02 billion. These results would represent year-over-year changes of +35.39% and +60.71%, respectively.

Any recent changes to analyst estimates for BMY should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. BMY is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 9.82 right now. Its industry sports an average Forward P/E of 23.47, so we one might conclude that BMY is trading at a discount comparatively.

Investors should also note that BMY has a PEG ratio of 1.08 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BMY's industry had an average PEG ratio of 1.55 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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