Bristol Myers Squibb (BMY) Shares Fall as Market Improves: Some Insights for Investors

Bristol Myers Squibb (BMY) closed the recent trading session at $42.19, demonstrating a -0.09% change from the previous day’s closing price. That move capped the S&P 500’s daily gain of 0.09%. Meanwhile, the Dow lost 0.1 percent and the Nasdaq, a technology index, added 0.16 percent.

Shares of the biopharmaceutical company have risen 2.4% in the past month, leading the medical sector’s 2.3% gain and underperforming the S&P 500’s 2.83% gain.

Investors will be keenly watching Bristol Myers Squibb’s performance in its upcoming earnings release. The company’s earnings report is scheduled to be revealed on July 26, 2024. The company is expected to post EPS of $1.67, indicating a 4.57% decrease from the same quarter last year. Our latest consensus estimate calls for quarterly revenue of $11.48 billion, up 2.23% from the year-ago period.

Looking at the full year, Zacks Consensus Estimates suggest analysts expect earnings of $0.59 per share and revenue of $46.12 billion. These totals would mark changes of -92.14% and +2.48% respectively from last year.

Investors should also pay attention to any recent changes in analyst estimates for Bristol Myers Squibb. These latest adjustments often reflect the changing dynamics of short-term business models. As a result, we can interpret positive revisions to estimates as a good sign for the company’s business prospects.

Our research suggests that these changes in estimates have a direct relationship with future stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these changes in estimates into account and provides a clear and actionable valuation model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has an outstanding, externally audited track record of success, with the #1 stock delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS Estimate has remained flat. Bristol Myers Squibb currently has a Zacks Rank of #3 (Hold).

The story continues

Investors should also consider Bristol Myers Squibb’s current valuation metrics, including the Forward P/E ratio of 71.49. This represents a premium compared to its industry average Forward P/E of 24.31.

Meanwhile, BMY’s PEG ratio is currently 14.3. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Medical – Biomedical & Genetics industry had an average PEG ratio of 2.15.

The Medical – Biomedical and Genetic Industry is part of the Medical sector. This group has a Zacks Industry Rank of 88, placing it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to stay on top of all these stock change metrics and more in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 best stocks for the next 30 days. Click to get this free report

Bristol Myers Squibb Company (BMY): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research