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Bristol Myers Squibb (BMY) Dips More Than Broader Markets: What You Should Know

Bristol Myers Squibb (BMY) closed the most recent trading day at $67.43, moving -0.66% from the previous trading session. This change lagged the S&P 500's 0.33% loss on the day.

Prior to today's trading, shares of the biopharmaceutical company had gained 1.43% over the past month. This has outpaced the Medical sector's loss of 4.76% and lagged the S&P 500's gain of 2.89% in that time.

BMY will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2021. In that report, analysts expect BMY to post earnings of $1.90 per share. This would mark year-over-year growth of 16.56%. Our most recent consensus estimate is calling for quarterly revenue of $11.29 billion, up 11.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $45.92 billion, which would represent changes of +15.84% and +7.99%, respectively, from the prior year.

It is also important to note the 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. BMY is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that BMY has a Forward P/E ratio of 9.1 right now. For comparison, its industry has an average Forward P/E of 24.98, which means BMY is trading at a discount to the group.

It is also worth noting that BMY currently has a PEG ratio of 1.31. 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 Medical - Biomedical and Genetics was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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.


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