Bristol Myers Squibb (BMY) Dips More Than Broader Markets: What You Should Know
Bristol Myers Squibb (BMY) closed at $66.77 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's 0.04% loss on the day.
Prior to today's trading, shares of the biopharmaceutical company had gained 2.09% over the past month. This has lagged the Medical sector's gain of 3.23% and outpaced the S&P 500's gain of 1.35% in that time.
Wall Street will be looking for positivity from BMY as it approaches its next earnings report date. This is expected to be July 28, 2021. The company is expected to report EPS of $1.92, up 17.79% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.33 billion, up 11.84% from the prior-year quarter.
BMY's full-year Zacks Consensus Estimates are calling for earnings of $7.46 per share and revenue of $46 billion. These results would represent year-over-year changes of +15.84% and +8.18%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.17% higher within the past month. BMY currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, BMY is holding a Forward P/E ratio of 8.97. For comparison, its industry has an average Forward P/E of 23.56, which means BMY is trading at a discount to the group.
Also, we should mention that BMY has a PEG ratio of 1.29. 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 - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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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