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Bristol Myers Squibb (BMY) Gains But Lags Market: What You Should Know

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Bristol Myers Squibb (BMY - Free Report) closed the most recent trading day at $66.95, moving +0.59% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.75%.

Coming into today, shares of the biopharmaceutical company had gained 2.72% in the past month. In that same time, the Medical sector gained 5.21%, while the S&P 500 gained 2.91%.

Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be July 28, 2021. The company is expected to report EPS of $1.92, up 17.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.33 billion, up 11.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $46 billion, which would represent changes of +15.84% and +8.18%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BMY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. BMY is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, BMY currently has a Forward P/E ratio of 8.92. For comparison, its industry has an average Forward P/E of 23.49, which means BMY is trading at a discount to the group.

We can also see that BMY currently has a PEG ratio of 1.28. 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 was holding an average PEG ratio of 1.42 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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