In the latest trading session, Bristol Myers Squibb (BMY) closed at $60.74, marking a -2.55% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw a downswing of 1.61%, while the tech-heavy Nasdaq depreciated by 0.26%.
Coming into today, shares of the biopharmaceutical company had gained 8.17% in the past month. In that same time, the Medical sector gained 0.06%, while the S&P 500 lost 0.15%.
Investors will be eagerly watching for the performance of Bristol Myers Squibb in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.46, reflecting a 18.89% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.86 billion, showing a 3.02% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.26 per share and a revenue of $47.02 billion, indicating changes of +1.79% and -2.44%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Bristol Myers Squibb. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 3.3% upward. At present, Bristol Myers Squibb boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Bristol Myers Squibb is holding a Forward P/E ratio of 9.96. For comparison, its industry has an average Forward P/E of 20.33, which means Bristol Myers Squibb is trading at a discount to the group.
One should further note that BMY currently holds a PEG ratio of 0.18. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 133, this industry ranks in the bottom 46% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Bristol Myers Squibb Company (BMY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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