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

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Bristol Myers Squibb (BMY - Free Report) closed at $73.26 in the latest trading session, marking a -1.2% move from the prior day. This move lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.29%.

Prior to today's trading, shares of the biopharmaceutical company had gained 1.73% over the past month. This has outpaced the Medical sector's gain of 0.84% and lagged the S&P 500's gain of 4.06% 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. In that report, analysts expect Bristol Myers Squibb to post earnings of $1.72 per share. This would mark a year-over-year decline of 6.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.13 billion, down 7.16% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Bristol Myers Squibb. 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. 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 0.29% higher within the past month. Bristol Myers Squibb is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Bristol Myers Squibb's current valuation metrics, including its Forward P/E ratio of 9.37. For comparison, its industry has an average Forward P/E of 20.83, which means Bristol Myers Squibb is trading at a discount to the group.

Investors should also note that BMY has a PEG ratio of 1.65 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 - Biomedical and Genetics was holding an average PEG ratio of 1.65 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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