Why Bristol Myers Squibb (BMY) Outpaced the Stock Market Today

Zacks Equity Research
·3-min read

The latest trading session saw Bristol Myers Squibb (BMY) ending at $41.77, denoting a +1.65% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.56%.

The the stock of biopharmaceutical company has fallen by 6.59% in the past month, lagging the Medical sector's gain of 2.86% and the S&P 500's gain of 5.06%.

Investors will be eagerly watching for the performance of Bristol Myers Squibb in its upcoming earnings disclosure. On that day, Bristol Myers Squibb is projected to report earnings of $1.67 per share, which would represent a year-over-year decline of 4.57%. Meanwhile, our latest consensus estimate is calling for revenue of $11.48 billion, up 2.23% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.59 per share and a revenue of $46.12 billion, signifying shifts of -92.14% and +2.48%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Bristol Myers Squibb. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, there's been a 0.48% fall in the Zacks Consensus EPS estimate. Bristol Myers Squibb is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Bristol Myers Squibb's current valuation metrics, including its Forward P/E ratio of 69.56. This signifies a premium in comparison to the average Forward P/E of 21.69 for its industry.

Also, we should mention that BMY has a PEG ratio of 13.91. 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. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 2.07 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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