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

Zacks Equity Research

Bristol-Myers Squibb (BMY) closed the most recent trading day at $64.19, moving +0.72% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.3%.

Prior to today's trading, shares of the biopharmaceutical company had gained 11.01% over the past month. This has outpaced the Medical sector's gain of 3.08% and the S&P 500's gain of 2.69% in that time.

Wall Street will be looking for positivity from BMY as it approaches its next earnings report date. This is expected to be February 6, 2020. The company is expected to report EPS of $1.06, up 12.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.10 billion, up 18.85% from the prior-year quarter.

Any recent changes to analyst estimates for BMY should also be noted by investors. 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.

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. The Zacks Consensus EPS estimate has moved 2.09% higher within the past month. BMY is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, BMY is currently trading at a Forward P/E ratio of 14.26. This valuation marks a discount compared to its industry's average Forward P/E of 15.63.

Also, we should mention that BMY has a PEG ratio of 1.45. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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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