Bristol Myers Squibb (BMY) closed the most recent trading day at $59.95, moving -0.17% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.81%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 1.27%.
Prior to today’s trading, shares of the biopharmaceutical company had lost 2.09% over the past month. This has lagged the Medical sector’s loss of 1.62% and the S&P 500’s gain of 5.06% in that time.
Wall Street will be looking for positivity from BMY as it approaches its next earnings report date. On that day, BMY is projected to report earnings of $1.49 per share, which would represent year-over-year growth of 27.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.37 billion, up 72.68% from the year-ago period.
BMY’s full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $41.88 billion. These results would represent year-over-year changes of +33.05% and +60.19%, respectively.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.85% higher. BMY is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, BMY currently has a Forward P/E ratio of 9.63. For comparison, its industry has an average Forward P/E of 22.63, which means BMY is trading at a discount to the group.
Investors should also note that BMY has a PEG ratio of 1.12 right now. 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. The Medical – Biomedical and Genetics industry currently had an average PEG ratio of 1.74 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 184, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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