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Bausch Health (BHC) Outpaces Stock Market Gains: What You Should Know

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Bausch Health (BHC - Free Report) closed the most recent trading day at $27.79, moving +0.65% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.

Heading into today, shares of the drugmaker had gained 16.35% over the past month, outpacing the Medical sector's gain of 5.28% and the S&P 500's gain of 4.56% in that time.

Investors will be hoping for strength from Bausch Health as it approaches its next earnings release. In that report, analysts expect Bausch Health to post earnings of $1.08 per share. This would mark a year-over-year decline of 18.8%. Our most recent consensus estimate is calling for quarterly revenue of $2.22 billion, up 0.22% from the year-ago period.

Any recent changes to analyst estimates for Bausch Health should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Bausch Health is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Bausch Health has a Forward P/E ratio of 6.53 right now. This represents a discount compared to its industry's average Forward P/E of 13.91.

Investors should also note that BHC has a PEG ratio of 0.54 right now. 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 - Generic Drugs was holding an average PEG ratio of 0.7 at yesterday's closing price.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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