In the latest trading session, Bristol-Myers Squibb (BMY) closed at $62.09, marking a +1.32% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.11%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the biopharmaceutical company had gained 5.38% over the past month, outpacing the Medical sector's gain of 4.84% and the S&P 500's gain of 1.62% in that time.
Investors will be hoping for strength from BMY as it approaches its next earnings release. The company is expected to report EPS of $0.94, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.16 billion, up 3.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $24.93 billion, which would represent changes of +10.05% and +10.51%, respectively, from the prior year.
Any recent changes to analyst estimates for BMY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% higher. BMY is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 14 right now. Its industry sports an average Forward P/E of 14.83, so we one might conclude that BMY is trading at a discount comparatively.
We can also see that BMY currently has a PEG ratio of 1.42. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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