Bristol Myers Squibb (BMY - Free Report) closed the most recent trading day at $58.38, moving +1.42% from the previous trading session. This change outpaced the S&P 500's 0.43% gain on the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq gained 0.75%.
BMY will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2020. In that report, analysts expect BMY to post earnings of $1.46 per share. This would mark year-over-year growth of 23.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.96 billion, up 58.78% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.14 per share and revenue of $41.58 billion. These totals would mark changes of +30.92% and +59.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BMY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. BMY is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, BMY is holding a Forward P/E ratio of 9.37. Its industry sports an average Forward P/E of 15.56, so we one might conclude that BMY is trading at a discount comparatively.
Also, we should mention that BMY has a PEG ratio of 1.12. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.