Bristol-Myers Squibb (BMY) Dips More Than Broader Markets: What You Should Know

Bristol-Myers Squibb (BMY) closed at $56.80 in the latest trading session, marking a -1.85% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.33%.

Heading into today, shares of the biopharmaceutical company had gained 0.36% over the past month, outpacing the Medical sector's loss of 8.16% and the S&P 500's loss of 10.5% in that time.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be May 7, 2020. The company is expected to report EPS of $1.37, up 24.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.92 billion, up 67.59% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.11 per share and revenue of $41.52 billion. These totals would mark changes of +30.28% and +58.79%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest near-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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. BMY is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, BMY is holding a Forward P/E ratio of 9.48. For comparison, its industry has an average Forward P/E of 14.09, which means BMY is trading at a discount to the group.

Investors should also note that BMY has a PEG ratio of 1.28 right now. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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