Back to top

Image: Bigstock

Bausch Health (BHC) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Bausch Health (BHC - Free Report) closed at $24.78 in the latest trading session, marking a +1.6% move from the prior day. This move outpaced the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 0.1%.

Prior to today's trading, shares of the drugmaker had lost 7.54% over the past month. This has lagged the Medical sector's loss of 2.97% and the S&P 500's loss of 4.03% in that time.

Wall Street will be looking for positivity from Bausch Health as it approaches its next earnings report date. This is expected to be February 23, 2022. The company is expected to report EPS of $1.08, down 18.8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.21 billion, down 0.32% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Bausch Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.84% higher within the past month. Bausch Health is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Bausch Health is holding a Forward P/E ratio of 5.12. 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. 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. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.57 based on yesterday's closing prices.

The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 16% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


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

Published in