Back to top

Image: Bigstock

Bausch Health (BHC) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Bausch Health (BHC - Free Report) closed the most recent trading day at $24.39, moving -0.53% from the previous trading session. This move lagged the S&P 500's daily loss of 0.37%.

Coming into today, shares of the drugmaker had lost 9.25% in the past month. In that same time, the Medical sector lost 6.42%, while the S&P 500 lost 6.01%.

Investors will be hoping for strength from Bausch Health as it approaches its next earnings release, which is expected to be February 23, 2022. In that report, analysts expect Bausch Health to post earnings of $1.08 per share. This would mark a year-over-year decline of 18.8%. Meanwhile, our latest consensus estimate is calling for revenue of $2.21 billion, down 0.32% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Bausch Health. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.84% higher within the past month. Bausch Health is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Bausch Health is currently trading at a Forward P/E ratio of 5.14. For comparison, its industry has an average Forward P/E of 14.4, which means Bausch Health is trading at a discount to the group.

We can also see that BHC currently has a PEG ratio of 0.26. 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. The Medical - Generic Drugs was holding an average PEG ratio of 0.57 at yesterday's closing price.

The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


See More Zacks Research for These Tickers


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


Bausch Health Cos Inc. (BHC) - free report >>

Published in