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

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In the latest trading session, Bristol Myers Squibb (BMY) closed at $59.01, marking a -0.3% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day.

Prior to today's trading, shares of the biopharmaceutical company had lost 8.83% over the past month. This has was narrower than the Medical sector's loss of 10.16% and lagged the S&P 500's loss of 3.68% in that time.

BMY will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2021. The company is expected to report EPS of $1.91, up 17.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.51 billion, up 9.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $46.32 billion, which would represent changes of +16.15% and +8.95%, respectively, from the prior year.

Any recent changes to analyst estimates for BMY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 0.1% higher. BMY is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 7.92 right now. Its industry sports an average Forward P/E of 24.54, so we one might conclude that BMY is trading at a discount comparatively.

It is also worth noting that BMY currently has a PEG ratio of 1.12. 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 1.55 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 172, putting it in the bottom 33% 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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