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Bristol Myers Squibb (BMY) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Bristol Myers Squibb (BMY - Free Report) closed the most recent trading day at $50, moving -0.62% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.

The biopharmaceutical company's shares have seen a decrease of 2.01% over the last month, not keeping up with the Medical sector's gain of 4.61% and the S&P 500's gain of 1.56%.

The investment community will be paying close attention to the earnings performance of Bristol Myers Squibb in its upcoming release. The company is slated to reveal its earnings on February 2, 2024. The company's earnings per share (EPS) are projected to be $1.73, reflecting a 4.95% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $11.14 billion, down 2.31% from the year-ago period.

Investors should also pay attention to any latest changes in analyst estimates for Bristol Myers Squibb. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, there's been no change in the Zacks Consensus EPS estimate. As of now, Bristol Myers Squibb holds a Zacks Rank of #4 (Sell).

In terms of valuation, Bristol Myers Squibb is currently trading at a Forward P/E ratio of 6.86. This represents a discount compared to its industry's average Forward P/E of 22.34.

Meanwhile, BMY's PEG ratio is currently 1.37. 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 average PEG ratio for the Medical - Biomedical and Genetics industry stood at 1.94 at the close of the market yesterday.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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