Back to top

Image: Bigstock

Is Bristol Myers Squibb (BMY) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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 has a Forward P/E ratio of 8.65. This compares to its industry's average Forward P/E of 16. Over the past 52 weeks, BMY's Forward P/E has been as high as 14.36 and as low as 7.25, with a median of 9.97.

Investors should also note that BMY holds a PEG ratio of 1.03. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BMY's PEG compares to its industry's average PEG of 2.08. BMY's PEG has been as high as 2.22 and as low as 0.76, with a median of 1.14, all within the past year.

We should also highlight that BMY has a P/B ratio of 2.63. The P/B ratio is used to compare a stock's market value with 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 6.84. BMY's P/B has been as high as 5.89 and as low as 2, with a median of 4.39, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Bristol Myers Squibb is likely undervalued currently. And when considering the strength of its earnings outlook, BMY sticks out at as one of the market's strongest value stocks.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Bristol Myers Squibb Company (BMY) - free report >>

Published in