Why Bristol Myers Squibb (BMY) Dipped More Than Broader Market Today

In the latest trading session, Bristol Myers Squibb (BMY) closed at $66.82, marking a -1.87% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.29%.

Shares of the biopharmaceutical company witnessed a gain of 6.14% over the previous month, trailing the performance of the Medical sector with its gain of 6.34%, and outperforming the S&P 500's gain of 2.08%.

The investment community will be closely monitoring the performance of Bristol Myers Squibb in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.68, marking a 3.07% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.46 billion, up 1.93% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.86 per share and revenue of $49.82 billion, indicating changes of +11.54% and +3.38%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Bristol Myers Squibb should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.27% downward. Bristol Myers Squibb is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Bristol Myers Squibb's current valuation metrics, including its Forward P/E ratio of 9.93. This represents a discount compared to its industry average Forward P/E of 21.83.

It's also important to note that BMY currently trades at a PEG ratio of 0.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 35% echelons 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% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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