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

Zacks Equity Research
·3-min read

Bristol Myers Squibb (BMY) closed at $60.29 in the latest trading session, marking a +0.17% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.08%. Elsewhere, the Dow lost 1.51%, while the tech-heavy Nasdaq lost 0.86%.

Heading into today, shares of the biopharmaceutical company had lost 2.02% over the past month, lagging the Medical sector's loss of 0.35% and the S&P 500's loss of 0.3% in that time.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be August 6, 2020. On that day, BMY is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 21.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.97 billion, up 59.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.16 per share and revenue of $41.58 billion, which would represent changes of +31.34% and +59.05%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. BMY is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, BMY currently has a Forward P/E ratio of 9.77. This represents a discount compared to its industry's average Forward P/E of 24.93.

Meanwhile, BMY's PEG ratio is currently 1.16. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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Zacks Investment Research