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Bristol Myers Squibb (BMY) Surpasses Market Returns: Some Facts Worth Knowing

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Bristol Myers Squibb (BMY - Free Report) closed the latest trading day at $48.79, indicating a +1.06% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.67%.

The biopharmaceutical company's stock has dropped by 4.53% in the past month, falling short of the Medical sector's loss of 3.74% and the S&P 500's gain of 6.13%.

Market participants will be closely following the financial results of Bristol Myers Squibb in its upcoming release. It is anticipated that the company will report an EPS of $1.67, marking a 19.32% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.32 billion, indicating a 7.19% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.89 per share and a revenue of $46.32 billion, signifying shifts of +499.13% and -4.1%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Bristol Myers Squibb. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. At present, Bristol Myers Squibb boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Bristol Myers Squibb is presently trading at a Forward P/E ratio of 7. This represents a discount compared to its industry's average Forward P/E of 20.51.

One should further note that BMY currently holds a PEG ratio of 1.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.47.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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