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

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Bausch Health (BHC - Free Report) closed at $21.97 in the latest trading session, marking a -1.08% move from the prior day. This change lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Prior to today's trading, shares of the drugmaker had lost 10.23% over the past month. This has lagged the Medical sector's loss of 1.34% and the S&P 500's loss of 5.01% in that time.

Investors will be hoping for strength from Bausch Health as it approaches its next earnings release. On that day, Bausch Health is projected to report earnings of $1.03 per share, which would represent a year-over-year decline of 0.96%. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 1.77% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.50 per share and revenue of $8.56 billion. These totals would mark changes of +0.9% and +1.44%, respectively, from last year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 3.64% lower 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 4.93. This valuation marks a discount compared to its industry's average Forward P/E of 14.98.

Investors should also note that BHC has a PEG ratio of 0.42 right now. 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. BHC's industry had an average PEG ratio of 0.61 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 198, which puts it in the bottom 23% 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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