Back to top

Image: Bigstock

Bausch Health (BHC) Stock Moves -0.56%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Bausch Health (BHC - Free Report) closed at $23.17, marking a -0.56% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.34%.

Heading into today, shares of the drugmaker had lost 0.55% over the past month, lagging the Medical sector's gain of 5.54% and the S&P 500's gain of 6.02% in that time.

Bausch Health will be looking to display strength as it nears its next earnings release. In that report, analysts expect Bausch Health to post earnings of $1.03 per share. This would mark a year-over-year decline of 0.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 1.77% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $8.56 billion, which would represent changes of +0.9% and +1.44%, respectively, from the prior year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Bausch Health is currently a Zacks Rank #3 (Hold).

In terms of valuation, Bausch Health is currently trading at a Forward P/E ratio of 5.17. This valuation marks a discount compared to its industry's average Forward P/E of 16.8.

Also, we should mention that BHC 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. The Medical - Generic Drugs was holding an average PEG ratio of 0.7 at yesterday's closing price.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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.


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