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Bausch Health (BHC) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Bausch Health (BHC - Free Report) closed at $23.23, marking a -1.69% move from the previous day. This change lagged the S&P 500's daily loss of 1.26%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.44%.

Coming into today, shares of the drugmaker had gained 8.59% in the past month. In that same time, the Medical sector gained 4.88%, while the S&P 500 gained 6.07%.

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 $1.03 per share. This would mark a year-over-year decline of 0.96%. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, up 1.77% from the year-ago period.

BHC's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $8.56 billion. These results would represent year-over-year changes of +0.9% and +1.44%, respectively.

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

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.

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 remained stagnant within the past month. Bausch Health is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Bausch Health is currently trading at a Forward P/E ratio of 5.25. This represents a discount compared to its industry's average Forward P/E of 16.34.

Investors should also note that BHC has a PEG ratio of 0.45 right now. 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. The Medical - Generic Drugs was holding an average PEG ratio of 0.76 at yesterday's closing price.

The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 17% 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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