49.82 +0.10 (0.20%)
After hours: 4:53PM EST
|Bid||49.44 x 4000|
|Ask||49.98 x 2900|
|Day's Range||49.03 - 49.80|
|52 Week Range||44.30 - 70.05|
|Beta (3Y Monthly)||1.12|
|PE Ratio (TTM)||56.95|
|Earnings Date||Jan 24, 2019|
|Forward Dividend & Yield||1.64 (3.31%)|
|1y Target Est||58.42|
Jim Cramer explains why there's been more merger and acquisition activity in recent months and says it's "just getting started."
Bristol-Myers “is vulnerable and it has an attractive pipeline to several potential acquirers,” Paulson said in the podcast released Monday. Paulson has the Celgene/Bristol-Myers trade as a 3 percent portfolio position, though his firm is short a pharma index rather than Bristol-Myers for about half of the position. “I just don’t feel comfortable being short Bristol in this environment,” Paulson said.
Abbott Laboratories (NYSE:ABT) stock rose steadily in the last year and is up around 20% in that time. Though shares hover near yearly highs, thanks to a quick bounce from $66 to $71.42 recently, biotech investors should still consider investing in this company. Last quarter's strong results, plus a recent dividend hike, signal a healthy 2019 year for this medical appliance and equipment firm. Abbott Laboratories will report Q4 results on Jan. 23 that will likely repeat Q3 2018 results, which were posted last October. The firm reported sales of $7.7 billion, up 7.8% on an organic basis. Since divesting its Abbott Medical Optics ("AMO") and integrating St. Jude Medical vascular business, it is more focused on heart and diabetic machines. Diagnostics, medical devices, nutrition, and established pharmaceuticals all grew in the healthy single digits. ### Full-Year 2018 Forecast for ABT Stock Abbott forecast earnings of $2.87 to $2.89 (adjusted), reflecting growth of 15%. It owes its growth to developments in its medical devices. For example, the U.S. approved the FreeStyle Libre 14-day system, so sales should start adding to results. FreeStyle Libre 2 system and High Sensitive Troponin, available in Europe, will bring healthy geographic diversification to its revenue. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Rise of Menswear On Dec. 16, 2018, Abbott declared a 32-cent a share quarterly dividend. This increase from 28-cents a share, or up 14.3%, gives investors a forward yield of 1.8%. This is below that of Bristol-Myers Squibb (NYSE:BMY), at 3.27%, Merck & Co. (NYSE:MRK), at 2.9%, or Pfizer (NYSE:PFE), at 3.39%. Medtronic (NYSE:MDT) has a comparable dividend yield of 2.29%. Despite dividend yields below that of comparable medical firms, this is still a bullish signal. Management is demonstrating its confidence in future cash flow growth and rewarding shareholders with income. Plus, the firm pays a higher dividend yield than the bottom 25% of dividend payers in the U.S. (according to simplywall.st). ### Abbott Balance Sheet Analysis Abbott's net worth increased in 2017 to $31.5 billion, but debt also rose, too, to $23.8 billion. This is due to the St. Jude Medical acquisition. Markets do not seem to care about the higher debt because its long term, the debt/equity ratio is only 0.62X, according to MacroTrends. In the drug space, Bausch Health Companies (NYSE:BHC) has a debt/equity of nearly 8x while Mylan N.V. (NASDAQ:MYL) is at 1.2X. The point here is that Abbot can handle the debt due to its healthy debt coverage. Its Operating cash flow of 26% exceeds its over 20% of total debt. Interest payment on the debt is covered by 4.8 times its EBIT. Abbott Laboratories debt levels increased from merger and acquisition activities. (Source: https://simplywall.st) ### Outlook for ABT Stock Synergies from the integration of Abbott's St Jude unit will save on costs. Because management puts an emphasis on improving its underlying gross margin, look for the unit to keep performing better and adding more to profits. The Alere unit, which will bring in $2 billion in revenue for fiscal 2018, will add positively to profits. Last year, Abbott stabilized and integrated the business. With that activity complete, it may concentrate on growing the business. As it happened that the strong flu season will benefit results, sustaining growth will depend on new product introductions from the unit. Based on the six analysts covering ABT stock, the average price target is $79.33, representing upside of 11%. Investors may build a bearish to neutral 10-year DCF Revenue Exit model that assumes revenue slowing in the single digits. Even in that scenario, the model from finbox.io would still suggest a fair value of $73, not far from the recent stock price of ABT. Abbott put a priority on its dividends over debt repayment. Its businesses are growing steadily and the product list is getting bigger. Cash flow growth will let the company meet its dividend payment obligations while paring debt levels over the long-term. ABT stock is suitable for income investors who want to own a growing medical appliances firm at a reasonable price. As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality Compare Brokers The post All Signals Are Positive for Buying Abbott Laboratories appeared first on InvestorPlace.
Stocks fell world-wide as worries over economic growth bubbled up again, and more companies reported their earnings.
# Bristol-Myers Squibb Co ### NYSE:BMY View full report here! ## Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low ## Bearish sentiment Short interest | Positive Short interest is extremely low for BMY with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting BMY. ## Money flow ETF/Index ownership | Negative ETF activity is negative and may be weakening. The net inflows of $1.60 billion over the last one-month into ETFs that hold BMY are among the lowest of the last year and appear to be slowing. ## Economic sentiment PMI by IHS Markit | Neutral According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is strong relative to the trend shown over the past year, but is easing. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. BMY credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Performance of Opdivo and the recently announced acquisition of Celgene Corporation will be key areas of focus for the investors when Bristol-Myers (BMY) reports fourth-quarter results.
World Economic Forum gathers in Davos, Switzerland, government shutdown continues and earnings week two, here's what you need to know next week.
We take a numerical look through the life and work of Vanguard founder Jack Bogle. Plus, our most popular articles and videos for the week ended Jan. 18.
CNBC's Jim Cramer looks ahead at a busy week of earnings reports that he says might drive investors crazy. Johnson & Johnson, Comcast and Starbucks will be among the companies issuing quarterly results. "I can't recall a time when the forecast will be more important, certainly much more important than the results," Cramer, host of "Mad Money," told viewers.
Shares of Johnson & Johnson (NYSE:JNJ) have not been trading well, unlike the rest of the market. In fact, the JNJ has moved in the exact opposite direction as the market has over the past few several months. While the rest of U.S. stock market was taking a beating in October and November, Johnson & Johnson stock was one of a handful of names that kept on grinding higher. Of course, it helps that JNJ is a well-known blue-chip dividend stock that investors flock to for safety during bouts of volatility. In December though, investors dumped the stock after negative reports about JNJ surfaced. They allege that Johnson & Johnson failed to alert authorities that at times some of its baby powder products contained asbestos, something the company knew for decades. That's a pretty bold allegation, particularly given the vulnerability of its customer. In any regard, J&J was quick to come out in its own defense and even issued a $5 billion buyback plan. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Even sector M&A -- highlighted by Bristol-Myers' (NYSE:BMY) massive $74 billion deal for Celgene (NASDAQ:CELG) -- wasn't enough to give JNJ much of a lift. Although, the price has stabilized. ### Will It Impact Earnings? The question is, will this report impact the company's fiscal fourth-quarter earnings results, which will be released before the open on Tuesday January 22nd? * 7 Companies Apple Should Consider Buying I imagine that management will address the issue from a proactive position during the company's conference call. I expect them to deny these claims and let their legal team do the heavy lifting. All management is looking to do is reassure investors that the company is not in the wrong -- not that it will be the first time it has faced a major issue though. From a quarterly perspective, it doesn't really matter. JNJ is all about building long-term moats and maintaining its place among the healthcare sector. This situation is unlikely to dethrone the company, even if it does cause some short-term waves in the stock price. Remember, many investors are in this for the long term. As it stands, analysts expect $1.95 in earnings per share for the fourth quarter, representing 12.1% growth year-over-year (YoY). That's impressive growth considering that revenue estimates actually call for a 0.1% contraction to $20.17 billion. Also worth pointing out is that earnings estimates haven't really budged even amid these baby powder reports. 30 days and 60 days ago, analysts were looking for $1.95 in earnings per share and 90 days ago they were looking for $1.96 in EPS. Current estimates call for earnings growth of 11.8% this year to $8.16 per share. However, 2019 estimates call for growth of just 5.5% to $8.61 per share. Revenue growth is expected to fall from 6.4% in 2018 to just 1.6% in 2019. In this respect, let's see where management's guidance falls and whether its better or worse than consensus expectations. ### Trading JNJ Stock So what clues do we see from JNJ stock price ahead of earnings? Shares have been consolidating nicely near $128 to $129 per share. It's a surprisingly tight coil for a stock that's been so quickly beaten down. Investors likely felt that $122 was too much of a selloff, but aren't willing to bid the name up too much ahead of an event like earnings and after a damning baby powder report. It's encouraging to see that the declining 21-day moving average did not weigh on the stock price and push it lower. Instead, JNJ stock traded right past it, like it wasn't even there. However, the stock isn't showing any willingness to trade through the 200-day moving average and ~$132 level. Investors who love JNJ for the long-term can justify adding to their position here, some $20 off the highs we saw in December. However, they should also realize that a decline down to the December lows is possible should JNJ disappoint investors next week. Also keep in mind that the market has rallied like mad over the last three weeks. A pause or decline could weigh on JNJ stock, which has largely sat out the rally this month. * 7 Retail Stocks to Buy for the Rise of Menswear From a trading perspective, I would use a close below $128 as my stop-loss. However, because earnings are involved, it's very possible that whatever direction JNJ trades in could be a gap move. On the downside, look to see if its December lows near $122 hold as support. If it can clear and close above $132, bulls may consider buying a Johnson & Johnson stock breakout. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CELG. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post Should You Load Up on JNJ Stock Before Earnings? appeared first on InvestorPlace.
Pfizer's (PFE) tafamidis application gets FDA's priority review. Regulatory updates for Roche's (RHHBY) and Bristol-Myers'(BMY) cancer combination drugs in focus.
Atlas Venture-backed Kyn Therapeutics hopes to create drugs that reverse the effects of a metabolite called kynurenine, which cancer cells use to suppress the immune system and ward off attacks.
Roche's (RHHBY) sBLA for the label expansion of Tecentriq in combination with Abraxane for the initial treatment of NSCLC has been accepted by the FDA.
It is hard to say anything about McKesson (MCK) that we have not said before -- it is a high-quality business with extremely cheap shares. McKesson stock is not just cheap -- it's incredibly cheap. McKesson, for example, benefited tremendously when billions of dollars worth of branded drugs lost their patents and went generic between 2009 and 2015.
The big shareholder groups in Bristol-Myers Squibb Company (NYSE:BMY) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own Read More...
Bristol-Myers (BMY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
# Bristol-Myers Squibb Co ### NYSE:BMY View full report here! ## Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low ## Bearish sentiment Short interest | Positive Short interest is extremely low for BMY with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting BMY. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $10.42 billion over the last one-month into ETFs that hold BMY are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Neutral According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is strong relative to the trend shown over the past year, but is easing. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. BMY credit default swap spreads are rising towards their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to firstname.lastname@example.org. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The Zacks Analyst Blog Highlights: Procter & Gamble, NVIDIA, Bristol-Myers, Deere and Ecolab
Citron Research, the activist short-seller headed by Andrew Left, has dug up some nasty evidence against Ligand Pharmaceuticals Inc. (LGND). In a 23-page report, Citron accused the San Diego-based biopharmaceutical company of misleading investors, adding that its future revenue calculations are a "pipe dream." The short seller then slapped a $35 price target on the stock, implying 80% downside from the report’s publication date. After failing to successfully develop its own drugs, Ligand switched its business model to focus on collecting royalties and milestone payments from compounds and intellectual property that it licenses to other drug developers.
Ligand Pharmaceuticals stock crashed to nearly a two-year low Wednesday after short-seller Citron Research slammed the biotech stock for having "80% downside from its current levels."