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

Zacks Equity Research
·3 min read

In the latest trading session, Bristol Myers Squibb (BMY) closed at $61.92, marking a +0.81% move from the previous day. This change outpaced the S&P 500's 0.13% gain on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.15%.

Coming into today, shares of the biopharmaceutical company had lost 1.59% in the past month. In that same time, the Medical sector gained 3.37%, while the S&P 500 gained 2.59%.

Wall Street will be looking for positivity from BMY as it approaches its next earnings report date. This is expected to be February 4, 2021. In that report, analysts expect BMY to post earnings of $1.36 per share. This would mark year-over-year growth of 11.48%. Meanwhile, our latest consensus estimate is calling for revenue of $10.57 billion, up 32.98% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.35 per share and revenue of $42.01 billion, which would represent changes of +35.39% and +60.68%, 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 a result, we can interpret positive estimate revisions as a good sign for 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 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. 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 9.67 right now. Its industry sports an average Forward P/E of 22.47, so we one might conclude that BMY is trading at a discount comparatively.

Investors should also note that BMY has a PEG ratio of 1.06 right now. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.48 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% 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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