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Bristol Myers Squibb (BMY) Outpaces Stock Market Gains: What You Should Know

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Bristol Myers Squibb (BMY - Free Report) closed at $71.65 in the latest trading session, marking a +0.9% move from the prior day. This move outpaced the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.

Heading into today, shares of the biopharmaceutical company had lost 9.99% over the past month, lagging the Medical sector's loss of 1.89% and the S&P 500's loss of 0.94% in that time.

Investors will be hoping for strength from Bristol Myers Squibb as it approaches its next earnings release, which is expected to be February 2, 2023. The company is expected to report EPS of $1.72, down 6.01% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.13 billion, down 7.16% from the prior-year quarter.

Any recent changes to analyst estimates for Bristol Myers Squibb should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Bristol Myers Squibb is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Bristol Myers Squibb currently has a Forward P/E ratio of 9. For comparison, its industry has an average Forward P/E of 19.96, which means Bristol Myers Squibb is trading at a discount to the group.

Meanwhile, BMY's PEG ratio is currently 1.58. 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 industry currently had an average PEG ratio of 1.58 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.

To follow BMY in the coming trading sessions, be sure to utilize Zacks.com.


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