Bristol Myers Squibb (BMY) closed at $60.72 in the latest trading session, marking a +0.86% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.13%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Heading into today, shares of the biopharmaceutical company had lost 4.06% over the past month, lagging the Medical sector’s gain of 3.63% and the S&P 500’s gain of 3.58% in that time.
Investors will be hoping for strength from BMY as it approaches its next earnings release. The company is expected to report EPS of $1.36, up 11.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.57 billion, up 32.98% from the year-ago period.
BMY’s full-year Zacks Consensus Estimates are calling for earnings of $6.35 per share and revenue of $42.02 billion. These results would represent year-over-year changes of +35.39% and +60.71%, respectively.
Any recent changes to analyst estimates for BMY should also be noted by investors. These revisions help to show the ever-changing nature of 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 0.2% higher. BMY is currently a Zacks Rank #3 (Hold).
In terms of valuation, BMY is currently trading at a Forward P/E ratio of 9.48. This represents a discount compared to its industry’s average Forward P/E of 22.51.
We can also see that BMY currently has a PEG ratio of 1.04. 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. 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 group has a Zacks Industry Rank of 210, putting it in the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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