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

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Bristol Myers Squibb (BMY) closed the most recent trading day at $73.14, moving -0.81% from the previous trading session. This change lagged the S&P 500's daily gain of 2.76%. Elsewhere, the Dow gained 2.43%, while the tech-heavy Nasdaq added 0.13%.

Heading into today, shares of the biopharmaceutical company had lost 0.04% over the past month, lagging the Medical sector's gain of 5.69% and the S&P 500's gain of 4.44% in that time.

Bristol Myers Squibb will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2022. In that report, analysts expect Bristol Myers Squibb to post earnings of $1.87 per share. This would mark a year-over-year decline of 3.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.55 billion, down 1.31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.56 per share and revenue of $46.35 billion. These totals would mark changes of +0.67% and -0.08%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Bristol Myers Squibb. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Bristol Myers Squibb is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Bristol Myers Squibb currently has a Forward P/E ratio of 9.75. For comparison, its industry has an average Forward P/E of 21.99, which means Bristol Myers Squibb is trading at a discount to the group.

Also, we should mention that BMY has a PEG ratio of 1.56. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.15 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 80, which puts it in the top 32% 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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