BMY Stock Trades Near 52-Week Low: Time to Buy or Sell?

Share price of Bristol Myers Squibb (BMY) touched a 52-week low of $42.96 on July 31, post its second-quarter earnings release. The stock has recovered 6.7% since then and is currently trading at $45.85.

While BMY beat on both earnings and sales in the second quarter and upped its annual revenue projection, it trimmed its earnings guidance.

Bristol-Myers raised its 2025 revenue guidance to $46.5-$47.5 billion from $45.8-$46.8 billion on the back of strong performance of the Growth Portfolio, better-than-expected second-quarter Legacy Portfolio sales and a favorable impact of approximately $200 million related to foreign exchange rates.

However, the company now expects adjusted earnings per share (EPS) to be in the range of $6.35-$6.65 (previous guidance: $6.70-$7). The decline in annual earnings guidance can be attributed to an unfavorable (57 cents per share) impact of the acquired IPRD charge due to the BioNTech (BNTX) deal.

Investors were disappointed with the cut in guidance and shares fell post that.

Let us analyze BMY’s fundamentals in such a scenario to help make a prudent investment choice:

BMY’s Growth Portfolio Maintains Momentum in Q2

BMY’s Growth Portfolio comprises drugs like Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyku, Krazati and Cobenfy.

Revenues from the Growth portfolio totaled $6.6 billion, up 18% from the year-ago level, primarily due to demand for Opdvio, Breyanzi, Reblozyl and Camzyos.

Opdivo sales in the United States are being driven by a strong launch in MSI-high colorectal cancer and continued growth in first-line non-small cell lung cancer, while sales outside the country are being driven by volume growth.

The FDA had earlier granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The initial uptake has been strong and the launch is going well in the United States across all indicated tumor types.

BMY now expects global Opdivo sales together with Qvantig to deliver stronger growth in the mid to high single-digit range for the full year, driven by strong performance in the first half.

Thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck (MRK), has put up a stellar performance since its approval. Reblozyl global sales have clocked in over $1 billion year to date, reflecting continued strength across MDS-associated anemia.

Breyanzi sales skyrocketed 125% to $344 million, reflecting strong demand across all indications and higher-than-expected infusions that benefited the second quarter.

Cardiovascular drug Camzyos sales surged 87% due to robust demand.

BMY had earlier won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults. The drug was approved under the brand name Cobenfy.

The approval of Cobenfy for schizophrenia broadens BMY’s portfolio and validates the acquisition of Karuna Therapeutics.

Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. The initial uptake is encouraging, with sales of $62 million year to date. Cobenfy is expected to contribute meaningfully to BMY’s top line in the coming years as the company looks to expand the drug’s label into other indications.

These drugs should maintain top-line momentum in the coming quarters.

BMY Expects a Decline in Legacy Portfolio

As expected, revenues for the Legacy Portfolio continue to decline. Sales decreased 14% to $5.67 billion due to the continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the effects of the U.S. Medicare Part D redesign.

Among these, blood thinner medicine Eliquis, for which BMY has a worldwide co-development and co-commercialization agreement with pharma giant Pfizer (PFE), is the biggest contributor to the top line. Eliquis global sales were up 8%, primarily due to strong demand.

Nonetheless, BMY now expects the legacy portfolio to decline approximately 15% to 17% in 2025, a more moderate rate than previously anticipated, primarily due to Revlimid's strong year-to-date performance.

BMY’s Recent Collaborations Bode Well

The recent collaboration agreement with BNTX has strengthened BMY’s pipeline. Both companies have entered into an agreement for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.

Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment. BNT327, a next-generation bispecific antibody candidate, targets PD-L1 and VEGF-A.

In June 2025, BMY’s RayzeBio entered into a definitive agreement with Philochem AG, a wholly-owned subsidiary of the Philogen Group. Per the terms, Philochem will license the exclusive worldwide rights to develop, manufacture and commercialize OncoACP3, a clinical-stage therapeutic and diagnostic agent targeting prostate cancer, to RayzeBio.

BMY recently collaborated with Bain Capital to create a new independent biopharmaceutical company, which will be focused on developing new therapies for autoimmune diseases that address significant unmet needs of patients. Bain Capital will make a $300 million funding in the new company, while BMY will out-license five immunology candidates.

BMY’s Stock Price, Valuation and Estimate Revision

Shares of BMY have lost 18.9% year to date against the industry’s growth of 1.9%. The stock has also underperformed the sector and the S&P 500 Index.

BMY Underperforms Industry, Sector & S&P 500 Index

Going by the price/earnings ratio, BMY is inexpensive as of now. Shares currently trade at 7.48x forward earnings, lower than its mean of 8.50x and the large-cap pharma industry’s 14.46x.

The Zacks Consensus Estimate for 2025 EPS has moved north to $6.39 from $6.28 in the past seven days, while that for 2026 has increased to $6.08 from $6.02.

BMY’s Estimate Movement

Stay Invested in BMY Stock

BMY is one of the largest biotech and such large biotech companies are generally considered safe havens for investors interested in this sector. BMY has delivered a better-than-expected performance in the first half of 2025 as drugs like Opdivo, Reblozyl, Breyanzi and Camzyos have stabilized its revenue base amid generic competition for its legacy drugs. Approval of additional new drugs and label expansion of top drugs should further diversify its pipeline.

However, generic competition is a major headwind for the company as of now and the new drugs will take some time to offset this steep decline. Considering the recent pipeline setbacks and cut in earnings guidance, we recommend prospective investors to wait and watch for the time being.

For investors already owning the stock, staying invested would be a prudent move. The company’s attractive dividend yield (5.46%) is a strong reason for existing investors to stay invested.

BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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