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

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In the latest trading session, Bausch Health (BHC - Free Report) closed at $21.48, marking a -0.88% move from the previous day. This move lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the drugmaker had lost 5.04% over the past month. This has lagged the Medical sector's loss of 3.69% and was narrower than the S&P 500's loss of 5.26% in that time.

Investors will be hoping for strength from Bausch Health as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors might also notice recent changes to analyst estimates for Bausch Health. These revisions help to show the ever-changing nature of near-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 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 remained stagnant. Bausch Health is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Bausch Health currently has a Forward P/E ratio of 4.81. Its industry sports an average Forward P/E of 14.33, so we one might conclude that Bausch Health is trading at a discount comparatively.

Meanwhile, BHC's PEG ratio is currently 0.41. 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 industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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