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Bristol-Myers Squibb (BMY) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Bristol-Myers Squibb (BMY) closed at $46.18 in the latest trading session, marking a +1.83% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 1.06%.

Prior to today's trading, shares of the biopharmaceutical company had lost 1.16% over the past month. This has lagged the Medical sector's gain of 5.02% and the S&P 500's gain of 5.12% in that time.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be July 25, 2019. In that report, analysts expect BMY to post earnings of $1.05 per share. This would mark year-over-year growth of 3.96%. Our most recent consensus estimate is calling for quarterly revenue of $5.98 billion, up 4.82% from the year-ago period.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $23.89 billion. These results would represent year-over-year changes of +5.53% and +5.88%, respectively.

Investors should also note any recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.49% 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 10.8 right now. Its industry sports an average Forward P/E of 14.69, so we one might conclude that BMY is trading at a discount comparatively.

Also, we should mention that BMY has a PEG ratio of 2.11. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.1 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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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