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Is Bristol-Myers Squibb (BMY) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Bristol-Myers Squibb (BMY - Free Report) . BMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.99 right now. For comparison, its industry sports an average P/E of 14.41. Over the last 12 months, BMY's Forward P/E has been as high as 16.67 and as low as 9.22, with a median of 11.30.
We should also highlight that BMY has a P/B ratio of 5.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.56. Over the past 12 months, BMY's P/B has been as high as 8.19 and as low as 4.33, with a median of 5.53.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BMY has a P/S ratio of 3.46. This compares to its industry's average P/S of 3.78.
Finally, investors should note that BMY has a P/CF ratio of 12.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.72. Over the past 52 weeks, BMY's P/CF has been as high as 95.99 and as low as 10.18, with a median of 14.09.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bristol-Myers Squibb is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMY feels like a great value stock at the moment.
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Is Bristol-Myers Squibb (BMY) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Bristol-Myers Squibb (BMY - Free Report) . BMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.99 right now. For comparison, its industry sports an average P/E of 14.41. Over the last 12 months, BMY's Forward P/E has been as high as 16.67 and as low as 9.22, with a median of 11.30.
We should also highlight that BMY has a P/B ratio of 5.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.56. Over the past 12 months, BMY's P/B has been as high as 8.19 and as low as 4.33, with a median of 5.53.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BMY has a P/S ratio of 3.46. This compares to its industry's average P/S of 3.78.
Finally, investors should note that BMY has a P/CF ratio of 12.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.72. Over the past 52 weeks, BMY's P/CF has been as high as 95.99 and as low as 10.18, with a median of 14.09.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bristol-Myers Squibb is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMY feels like a great value stock at the moment.