Bristol Myers Squibb (BMY) closed at $59.67 in the latest trading session, marking a -0.77% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.86%. At the same time, the Dow lost 2.3%, and the tech-heavy Nasdaq lost 1.64%.
Prior to today's trading, shares of the biopharmaceutical company had gained 3.23% over the past month. This has outpaced the Medical sector's gain of 2.07% and lagged the S&P 500's gain of 7.63% in that time.
Investors will be hoping for strength from BMY as it approaches its next earnings release, which is expected to be November 5, 2020. The company is expected to report EPS of $1.49, up 27.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.40 billion, up 73.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.25 per share and revenue of $41.95 billion. These totals would mark changes of +33.26% and +60.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BMY. Recent revisions tend to reflect the latest 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.
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 0.16% higher within the past month. BMY is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note BMY's current valuation metrics, including its Forward P/E ratio of 9.61. Its industry sports an average Forward P/E of 23.71, so we one might conclude that BMY is trading at a discount comparatively.
Meanwhile, BMY's PEG ratio is currently 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 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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