Bristol-Myers Squibb (BMY) closed the most recent trading day at $50.06, moving -0.65% from the previous trading session. This change was narrower than the S&P 500's 1.58% loss on the day. At the same time, the Dow lost 1.99%, and the tech-heavy Nasdaq lost 1.63%.
Coming into today, shares of the biopharmaceutical company had lost 5.28% in the past month. In that same time, the Medical sector lost 6.39%, while the S&P 500 lost 6.62%.
Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect BMY to post earnings of $0.84 per share. This would mark year-over-year growth of 23.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.99 billion, up 9.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $22.58 billion, which would represent changes of +28.57% and +8.68%, respectively, from the prior year.
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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BMY currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 13.02 right now. For comparison, its industry has an average Forward P/E of 14.01, which means BMY is trading at a discount to the group.
Investors should also note that BMY has a PEG ratio of 1.41 right now. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.