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

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Bristol-Myers Squibb (BMY - Free Report) closed the most recent trading day at $50.94, moving +1.05% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.08%.

Coming into today, shares of the biopharmaceutical company had lost 2.72% in the past month. In that same time, the Medical sector lost 6.93%, while the S&P 500 lost 6.96%.

BMY will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. On that day, BMY is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 23.53%. Meanwhile, our latest consensus estimate is calling for revenue of $5.99 billion, up 9.85% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.87 per share and revenue of $22.58 billion. These totals would mark changes of +28.57% and +8.68%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BMY is currently a Zacks Rank #2 (Buy).

Investors should also note BMY's current valuation metrics, including its Forward P/E ratio of 13.02. Its industry sports an average Forward P/E of 14.03, so we one might conclude that BMY is trading at a discount comparatively.

It is also worth noting that BMY currently has a PEG ratio of 1.41. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% 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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