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Bristol-Myers Squibb (BMY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Bristol-Myers Squibb (BMY - Free Report) closed at $60.16, marking a -1.26% move from the previous day. This change lagged the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 1.04%, and the tech-heavy Nasdaq gained 0.67%.

Investors will be hoping for strength from BMY as it approaches its next earnings release. In that report, analysts expect BMY to post earnings of $1.46 per share. This would mark year-over-year growth of 23.73%. Our most recent consensus estimate is calling for quarterly revenue of $9.96 billion, up 58.78% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.14 per share and revenue of $41.58 billion, which would represent changes of +30.92% and +59.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. BMY is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 9.92 right now. For comparison, its industry has an average Forward P/E of 15.35, which means BMY is trading at a discount to the group.

Meanwhile, BMY's PEG ratio is currently 1.18. 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. BMY's industry had an average PEG ratio of 2.07 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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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