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Bausch Health (BHC) Gains As Market Dips: What You Should Know

Bausch Health (BHC) closed the most recent trading day at $25.06, moving +0.56% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.89%. At the same time, the Dow lost 1.3%, and the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the drugmaker had lost 10.97% in the past month. In that same time, the Medical sector lost 7.68%, while the S&P 500 lost 1.79%.

Investors will be hoping for strength from Bausch Health as it approaches its next earnings release. On that day, Bausch Health is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 18.05%. Meanwhile, our latest consensus estimate is calling for revenue of $2.21 billion, down 0.16% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Bausch Health. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 1.29% higher within the past month. Bausch Health currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Bausch Health is holding a Forward P/E ratio of 5.2. For comparison, its industry has an average Forward P/E of 12.47, which means Bausch Health is trading at a discount to the group.

It is also worth noting that BHC currently has a PEG ratio of 0.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.57 based on yesterday's closing prices.

The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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