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

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In the latest trading session, Bausch Health (BHC - Free Report) closed at $24.05, marking a +1.69% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.13%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.87%.

Prior to today's trading, shares of the drugmaker had lost 1.17% over the past month. This has lagged the Medical sector's gain of 5.72% and the S&P 500's gain of 2.65% in that time.

Wall Street will be looking for positivity from Bausch Health as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, up 1.77% from the year-ago period.

BHC's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $8.56 billion. These results would represent year-over-year changes of +0.9% and +1.44%, respectively.

Investors might also notice recent changes to analyst estimates for Bausch Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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 3.64% lower within the past month. Bausch Health is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Bausch Health's current valuation metrics, including its Forward P/E ratio of 5.25. For comparison, its industry has an average Forward P/E of 15.81, which means Bausch Health is trading at a discount to the group.

Meanwhile, BHC's PEG ratio is currently 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.66 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 181, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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