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Should Value Investors Buy Bristol-Myers Squibb (BMY) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Bristol-Myers Squibb (BMY - Free Report) is a stock many investors are watching right now. BMY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.31, while its industry has an average P/E of 14.75. Over the last 12 months, BMY's Forward P/E has been as high as 13.54 and as low as 9.22, with a median of 10.71.
Investors will also notice that BMY has a PEG ratio of 1.14. 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. BMY's industry currently sports an average PEG of 1.88. Over the last 12 months, BMY's PEG has been as high as 2.48 and as low as 1.07, with a median of 2.01.
Investors should also recognize that BMY has a P/B ratio of 5.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.40. Within the past 52 weeks, BMY's P/B has been as high as 6.42 and as low as 4.33, with a median of 5.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMY has a P/S ratio of 3.95. This compares to its industry's average P/S of 3.99.
Finally, we should also recognize that BMY has a P/CF ratio of 15.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BMY's P/CF compares to its industry's average P/CF of 15.46. BMY's P/CF has been as high as 42.24 and as low as 10.13, with a median of 13.30, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Bristol-Myers Squibb is likely undervalued currently. And when considering the strength of its earnings outlook, BMY sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Bristol-Myers Squibb (BMY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Bristol-Myers Squibb (BMY - Free Report) is a stock many investors are watching right now. BMY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.31, while its industry has an average P/E of 14.75. Over the last 12 months, BMY's Forward P/E has been as high as 13.54 and as low as 9.22, with a median of 10.71.
Investors will also notice that BMY has a PEG ratio of 1.14. 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. BMY's industry currently sports an average PEG of 1.88. Over the last 12 months, BMY's PEG has been as high as 2.48 and as low as 1.07, with a median of 2.01.
Investors should also recognize that BMY has a P/B ratio of 5.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.40. Within the past 52 weeks, BMY's P/B has been as high as 6.42 and as low as 4.33, with a median of 5.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMY has a P/S ratio of 3.95. This compares to its industry's average P/S of 3.99.
Finally, we should also recognize that BMY has a P/CF ratio of 15.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BMY's P/CF compares to its industry's average P/CF of 15.46. BMY's P/CF has been as high as 42.24 and as low as 10.13, with a median of 13.30, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Bristol-Myers Squibb is likely undervalued currently. And when considering the strength of its earnings outlook, BMY sticks out at as one of the market's strongest value stocks.