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Bristol-Myers Squibb (BMY) Flat As Market Gains: What You Should Know

Zacks Equity Research

Bristol-Myers Squibb (BMY) closed the most recent trading day at $67.43, making no change from the previous trading session. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the biopharmaceutical company had gained 6.76% over the past month, outpacing the Medical sector's gain of 0.81% and the S&P 500's gain of 3.23% in that time.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be February 6, 2020. In that report, analysts expect BMY to post earnings of $0.96 per share. This would mark year-over-year growth of 2.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.14 billion, up 2.75% from the year-ago period.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. BMY is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, BMY is holding a Forward P/E ratio of 11.02. This represents a discount compared to its industry's average Forward P/E of 16.11.

We can also see that BMY currently has a PEG ratio of 0.82. 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 Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.97 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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