Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Bristol Myers Squibb (BMY - Free Report) closed at $67.16, marking a +0.7% move from the previous day. This change lagged the S&P 500's 1.13% gain on the day.

Prior to today's trading, shares of the biopharmaceutical company had lost 1.04% over the past month. This has lagged the Medical sector's gain of 1.23% and the S&P 500's gain of 2.39% in that time.

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. Our most recent consensus estimate is calling for quarterly revenue 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. BMY currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BMY is holding a Forward P/E ratio of 8.94. Its industry sports an average Forward P/E of 23.19, so we one might conclude that BMY is trading at a discount comparatively.

Meanwhile, BMY's PEG ratio is currently 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 industry currently had an average PEG ratio of 1.38 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Bristol Myers Squibb Company (BMY) - free report >>

Published in