Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Bristol Myers Squibb (BMY)
New York-based Bristol-Myers Squibb is one of the leading global specialty biopharmaceutical companies focused on developing treatments targeting severe diseases. Blockbuster immuno-oncology drug Opdivo maintains momentum on consistent label expansions. The company’s efforts to revive its portfolio amid generic competition for legacy drugs like Revlimid, Pomalyst, Sprycel and Abraxane are impressive. Drugs like Reblozyl, Breyanzi, Camzyos and Opdualag stabilize its revenue base. Beyond oncology, the company offers essential immunology and cardiovascular drugs, such as Orencia and Eliquis, thereby diversifying its portfolio.
BMY sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - Biomedical and Genetics industry's P/E of 17.2X, shares of Bristol Myers Squibb are trading at a forward P/E of 6.9X. BMY also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 8.1X, and a Price/Sales ratio of 2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. 11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.14 to $6.89 per share. BMY has an average earnings surprise of 20.2%.
BMY should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).