In the latest trading session, Bausch Health (BHC - Free Report) closed at $22.68, marking a +1.43% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 1.09%, while the tech-heavy Nasdaq added 1.08%.
Coming into today, shares of the drugmaker had lost 2.14% in the past month. In that same time, the Medical sector lost 4.78%, while the S&P 500 lost 3.04%.
Investors will be hoping for strength from BHC as it approaches its next earnings release, which is expected to be February 27, 2019. In that report, analysts expect BHC to post earnings of $0.88 per share. This would mark a year-over-year decline of 10.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.09 billion, down 3.23% from the year-ago period.
Investors might also notice recent changes to analyst estimates for BHC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.22% higher within the past month. BHC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, BHC is currently trading at a Forward P/E ratio of 5.8. This valuation marks a discount compared to its industry's average Forward P/E of 11.8.
It is also worth noting that BHC currently has a PEG ratio of 0.29. 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. BHC's industry had an average PEG ratio of 1 as of yesterday's close.
The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% 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.