Bristol Myers Squibb (BMY) Gains As Market Dips: What You Should Know
Bristol Myers Squibb (BMY) closed at $62.69 in the latest trading session, marking a +0.13% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.02%.
Heading into today, shares of the biopharmaceutical company had gained 3.74% over the past month, outpacing the Medical sector's loss of 1.93% and lagging the S&P 500's gain of 6.61% in that time.
Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be April 29, 2021. In that report, analysts expect BMY to post earnings of $1.81 per share. This would mark year-over-year growth of 5.23%. Our most recent consensus estimate is calling for quarterly revenue of $11.13 billion, up 3.19% from the year-ago period.
BMY's full-year Zacks Consensus Estimates are calling for earnings of $7.45 per share and revenue of $45.98 billion. These results would represent year-over-year changes of +15.68% and +8.15%, respectively.
It is also important to note the recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. BMY is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 8.41 right now. For comparison, its industry has an average Forward P/E of 25.62, which means BMY is trading at a discount to the group.
Meanwhile, BMY's PEG ratio is currently 1.21. 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 1.52 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% 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.
To follow BMY in the coming trading sessions, be sure to utilize Zacks.com.
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