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

Zacks Equity Research
·3 min read

Bristol-Myers Squibb (BMY) closed the most recent trading day at $65.43, moving +0.71% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.04%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.28%.

Coming into today, shares of the biopharmaceutical company had gained 8.34% in the past month. In that same time, the Medical sector gained 2.37%, while the S&P 500 gained 3.84%.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be February 4, 2021. On that day, BMY is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 11.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.57 billion, up 32.98% from the year-ago period.

It is also important to note the recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. BMY is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, BMY is holding a Forward P/E ratio of 8.88. For comparison, its industry has an average Forward P/E of 25.9, which means BMY is trading at a discount to the group.

It is also worth noting that BMY currently has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.1 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 21% 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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Zacks Investment Research