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

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Bausch Health (BHC - Free Report) closed at $24.74 in the latest trading session, marking a -1.55% move from the prior day. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the drugmaker had lost 7.2% over the past month, lagging the Medical sector's loss of 5.24% and the S&P 500's loss of 6.25% 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. On that day, Bausch Health is projected to report earnings of $1.08 per share, which would represent a year-over-year decline of 18.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.21 billion, down 0.32% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Bausch Health. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% lower. Bausch Health is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Bausch Health's current valuation metrics, including its Forward P/E ratio of 5.38. This valuation marks a discount compared to its industry's average Forward P/E of 14.25.

We can also see that BHC currently has a PEG ratio of 0.44. 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. BHC's industry had an average PEG ratio of 0.68 as of yesterday's close.

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 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.

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


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