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Is Bristol-Myers Squibb (BMY) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Bristol-Myers Squibb (BMY - Free Report) . BMY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.06, while its industry has an average P/E of 14.49. Over the past 52 weeks, BMY's Forward P/E has been as high as 16.67 and as low as 9.72, with a median of 12.11.
Another valuation metric that we should highlight is BMY's P/B ratio of 4.62. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.93. Over the past year, BMY's P/B has been as high as 8.19 and as low as 4.57, with a median of 5.88.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BMY has a P/S ratio of 3.11. This compares to its industry's average P/S of 4.27.
Finally, investors should note that BMY has a P/CF ratio of 12.18. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.36. BMY's P/CF has been as high as 95.99 and as low as 12.05, with a median of 15.02, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bristol-Myers Squibb is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMY feels like a great value stock at the moment.
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Is Bristol-Myers Squibb (BMY) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Bristol-Myers Squibb (BMY - Free Report) . BMY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.06, while its industry has an average P/E of 14.49. Over the past 52 weeks, BMY's Forward P/E has been as high as 16.67 and as low as 9.72, with a median of 12.11.
Another valuation metric that we should highlight is BMY's P/B ratio of 4.62. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.93. Over the past year, BMY's P/B has been as high as 8.19 and as low as 4.57, with a median of 5.88.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BMY has a P/S ratio of 3.11. This compares to its industry's average P/S of 4.27.
Finally, investors should note that BMY has a P/CF ratio of 12.18. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.36. BMY's P/CF has been as high as 95.99 and as low as 12.05, with a median of 15.02, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bristol-Myers Squibb is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMY feels like a great value stock at the moment.