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Bristol-Myers Squibb (BMY) Gains But Lags Market: What You Should Know

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Bristol-Myers Squibb (BMY - Free Report) closed at $62.98 in the latest trading session, marking a +0.32% move from the prior day. This change lagged the S&P 500's 0.35% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.56%.

Prior to today's trading, shares of the biopharmaceutical company had gained 5.55% over the past month. This has outpaced the Medical sector's gain of 3.32% and the S&P 500's gain of 4.69% in that time.

Wall Street will be looking for positivity from BMY as it approaches its next earnings report date. This is expected to be February 6, 2020. On that day, BMY is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 10.64%. Meanwhile, our latest consensus estimate is calling for revenue of $7.10 billion, up 18.85% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for BMY. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 1.86% higher within the past month. BMY is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, BMY currently has a Forward P/E ratio of 10.85. This represents a discount compared to its industry's average Forward P/E of 15.47.

It is also worth noting that BMY currently has a PEG ratio of 1.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.1 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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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