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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 $58.80 in the latest trading session, marking a +1.73% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.54%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 1.87%.

Heading into today, shares of the biopharmaceutical company had lost 4.13% over the past month, lagging the Medical sector's loss of 2.77% and the S&P 500's gain of 0.57% in that time.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be August 6, 2020. In that report, analysts expect BMY to post earnings of $1.48 per share. This would mark year-over-year growth of 25.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.96 billion, up 58.78% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.14 per share and revenue of $41.58 billion, which would represent changes of +30.92% and +59.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BMY. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. BMY is currently a Zacks Rank #2 (Buy).

In terms of valuation, BMY is currently trading at a Forward P/E ratio of 9.41. This valuation marks a discount compared to its industry's average Forward P/E of 15.23.

It is also worth noting that BMY currently has a PEG ratio of 1.12. 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. BMY's industry 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 30, which puts it in the top 12% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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