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

Zacks Equity Research
Illumina (ILMN) closed the most recent trading day at $302.29, moving -0.9% from the previous trading session.

In the latest trading session, Bristol-Myers Squibb (BMY) closed at $48.36, marking a +1.83% move from the previous day. This change outpaced the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq added 0.71%.

Coming into today, shares of the biopharmaceutical company had lost 6.24% in the past month. In that same time, the Medical sector lost 0.66%, while the S&P 500 gained 0.28%.

Wall Street will be looking for positivity from BMY as it approaches its next earnings report date. This is expected to be April 25, 2019. The company is expected to report EPS of $1.07, up 13.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.80 billion, up 11.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.16 per share and revenue of $23.86 billion. These totals would mark changes of +4.52% and +5.75%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BMY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. BMY currently has a Zacks Rank of #3 (Hold).

Investors should also note BMY's current valuation metrics, including its Forward P/E ratio of 11.42. For comparison, its industry has an average Forward P/E of 15.14, which means BMY is trading at a discount to the group.

Meanwhile, BMY's PEG ratio is currently 2.42. 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 2.12 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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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