Bristol Myers Squibb (BMY) Gains But Lags Market: What You Should Know
Bristol Myers Squibb (BMY) closed at $68.34 in the latest trading session, marking a +0.56% move from the prior day. This change lagged the S&P 500's 1.02% gain on the day.
Heading into today, shares of the biopharmaceutical company had gained 3.2% over the past month, outpacing the Medical sector's loss of 3.68% and the S&P 500's gain of 3.01% in that time.
Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be July 28, 2021. The company is expected to report EPS of $1.88, up 15.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.24 billion, up 10.97% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.45 per share and revenue of $45.86 billion, which would represent changes of +15.68% and +7.86%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BMY. 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. 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.
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 0.13% lower within the past month. BMY currently has a Zacks Rank of #3 (Hold).
In terms of valuation, BMY is currently trading at a Forward P/E ratio of 9.12. Its industry sports an average Forward P/E of 26.8, so we one might conclude that BMY is trading at a discount comparatively.
Investors should also note that BMY has a PEG ratio of 1.3 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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