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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 $49.74 in the latest trading session, marking a +0.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.4%.

Coming into today, shares of the biopharmaceutical company had gained 4.24% in the past month. In that same time, the Medical sector gained 0.32%, while the S&P 500 gained 3.92%.

Wall Street will be looking for positivity from BMY as it approaches its next earnings report date. This is expected to be October 31, 2019. On that day, BMY is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 2.75%. Meanwhile, our latest consensus estimate is calling for revenue of $5.83 billion, up 2.36% from the prior-year quarter.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $4.28 per share and revenue of $24.07 billion. These results would represent year-over-year changes of +7.54% and +6.69%, respectively.

Investors should also note any recent changes to analyst estimates for BMY. These revisions help to show the ever-changing nature of near-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. 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, 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 0.47% higher. BMY is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, BMY is currently trading at a Forward P/E ratio of 11.55. For comparison, its industry has an average Forward P/E of 13.73, which means BMY is trading at a discount to the group.

Meanwhile, BMY's PEG ratio is currently 2.44. 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. BMY's industry had an average PEG ratio of 1.94 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 38, which puts it in the top 15% 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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