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

Bristol Myers Squibb (BMY) closed at $58.05 in the latest trading session, marking a +0.35% move from the prior day. The stock lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 1.67%.

Coming into today, shares of the biopharmaceutical company had lost 0.57% in the past month. In that same time, the Medical sector gained 3.64%, while the S&P 500 gained 5.51%.

BMY will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2020. The company is expected to report EPS of $1.43, up 21.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.99 billion, up 59.18% from the year-ago period.

BMY's full-year Zacks Consensus Estimates are calling for earnings of $6.17 per share and revenue of $41.67 billion. These results would represent year-over-year changes of +31.56% and +59.38%, respectively.

Investors should also note any recent changes to analyst estimates for BMY. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.41% higher within the past month. BMY is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note BMY's current valuation metrics, including its Forward P/E ratio of 9.38. For comparison, its industry has an average Forward P/E of 25.83, which means BMY is trading at a discount to the group.

It is also worth noting that BMY currently has a PEG ratio of 1.11. 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. BMY's industry had an average PEG ratio of 1.7 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

To follow BMY in the coming trading sessions, be sure to utilize Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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