Bristol Myers Squibb (BMY) closed at $57.75 in the latest trading session, marking a +0.56% move from the prior day. This move outpaced the S&P 500's daily loss of 0.94%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 2.13%.
Coming into today, shares of the biopharmaceutical company had gained 1.27% in the past month. In that same time, the Medical sector lost 1.77%, while the S&P 500 gained 0.02%.
Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be August 6, 2020. In that report, analysts expect BMY to post earnings of $1.43 per share. This would mark year-over-year growth of 21.19%. Meanwhile, our latest consensus estimate is calling for revenue of $9.97 billion, up 59.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.16 per share and revenue of $41.58 billion, which would represent changes of +31.34% and +59.05%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BMY. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. BMY is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, BMY is currently trading at a Forward P/E ratio of 9.32. This valuation marks a discount compared to its industry's average Forward P/E of 27.38.
Investors should also note that BMY has a PEG ratio of 1.11 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 1.93 at yesterday's closing price.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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