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Bristol Myers Squibb (BMY) Advances But Underperforms Market: Key Facts

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Bristol Myers Squibb (BMY - Free Report) ended the recent trading session at $49.95, demonstrating a +0.46% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.01%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq added 1.13%.

Shares of the biopharmaceutical company have appreciated by 3.22% over the course of the past month, underperforming the Medical sector's gain of 4.91% and outperforming the S&P 500's gain of 2.5%.

The upcoming earnings release of Bristol Myers Squibb will be of great interest to investors. The company is forecasted to report an EPS of $1.58, showcasing a 21% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.29 billion, indicating a 2.99% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.77 per share and revenue of $46.83 billion, which would represent changes of -89.75% and +4.06%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Bristol Myers Squibb. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% decrease. Right now, Bristol Myers Squibb possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Bristol Myers Squibb is at present trading with a Forward P/E ratio of 64.3. This valuation marks a premium compared to its industry's average Forward P/E of 25.79.

Also, we should mention that BMY has a PEG ratio of 12.86. 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. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 2.28.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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