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Bausch Health (BHC) Dips More Than Broader Markets: What You Should Know

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Bausch Health (BHC - Free Report) closed the most recent trading day at $4.59, moving -0.65% from the previous trading session. This change lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.01%.

Coming into today, shares of the drugmaker had lost 45.84% in the past month. In that same time, the Medical sector gained 1.05%, while the S&P 500 gained 8.35%.

Bausch Health will be looking to display strength as it nears its next earnings release, which is expected to be August 9, 2022. On that day, Bausch Health is projected to report earnings of $0.93 per share, which would represent a year-over-year decline of 5.1%. Our most recent consensus estimate is calling for quarterly revenue of $2.07 billion, down 1.52% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.94 per share and revenue of $8.33 billion. These totals would mark changes of -11.66% and -1.27%, respectively, from last year.

Any recent changes to analyst estimates for Bausch Health should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Bausch Health is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Bausch Health is currently trading at a Forward P/E ratio of 1.17. This represents a discount compared to its industry's average Forward P/E of 14.57.

Meanwhile, BHC's PEG ratio is currently 0.06. 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. The Medical - Generic Drugs was holding an average PEG ratio of 0.62 at yesterday's closing price.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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