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Bristol Myers Squibb (BMY) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Bristol Myers Squibb (BMY) closed at $64.82, marking a -1.01% move from the previous day.

This story originally appeared on Zacks

Bristol Myers Squibb (BMY) closed the most recent trading day at $64.82, moving -1.01% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.14%.

- Zacks

Heading into today, shares of the biopharmaceutical company had gained 10.03% over the past month, outpacing the Medical sector's loss of 1.05% and the S&P 500's gain of 0.12% in that time.

Bristol Myers Squibb will be looking to display strength as it nears its next earnings release, which is expected to be February 4, 2022. On that day, Bristol Myers Squibb is projected to report earnings of $1.84 per share, which would represent year-over-year growth of 26.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12 billion, up 8.43% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Bristol Myers Squibb. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.39% lower within the past month. Bristol Myers Squibb currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Bristol Myers Squibb currently has a Forward P/E ratio of 8.3. Its industry sports an average Forward P/E of 18.56, so we one might conclude that Bristol Myers Squibb is trading at a discount comparatively.

It is also worth noting that BMY currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BMY's industry had an average PEG ratio of 1.08 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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