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Bristol Myers Squibb (BMY) Gains As Market Dips: What You Should Know

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Bristol Myers Squibb (BMY - Free Report) closed at $74.43 in the latest trading session, marking a +0.87% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.26%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.44%.

Prior to today's trading, shares of the biopharmaceutical company had gained 7.3% over the past month. This has outpaced the Medical sector's gain of 4.88% and the S&P 500's gain of 6.07% in that time.

Bristol Myers Squibb will be looking to display strength as it nears its next earnings release, which is expected to be April 29, 2022. On that day, Bristol Myers Squibb is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 10.92%. Our most recent consensus estimate is calling for quarterly revenue of $11.33 billion, up 2.28% from the year-ago period.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $7.80 per share and revenue of $46.89 billion. These results would represent year-over-year changes of +3.86% and +1.08%, respectively.

It is also important to note the recent changes to analyst estimates for Bristol Myers Squibb. 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, 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 0.1% higher within the past month. Bristol Myers Squibb is currently a Zacks Rank #3 (Hold).

In terms of valuation, Bristol Myers Squibb is currently trading at a Forward P/E ratio of 9.47. Its industry sports an average Forward P/E of 23.91, so we one might conclude that Bristol Myers Squibb is trading at a discount comparatively.

It is also worth noting that BMY currently has a PEG ratio of 1.4. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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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