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Princeton, New Jersey-based Bristol-Myers Squibb Company (BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products. With a market cap of $113.5 billion, the company focuses on products and experimental therapies address cancer, heart disease, HIV and AIDS, diabetes, rheumatoid arthritis, hepatitis, organ transplant rejection, and psychiatric disorders.
Shares of this biopharma giant have underperformed the broader market considerably over the past year. BMY has gained 4.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.8%. In 2024, BMY stock is up 7.7%, compared to the SPX’s 24.3% rise on a YTD basis.
Narrowing the focus, BMY’s underperformance looks less pronounced compared to the iShares U.S. Pharmaceuticals ETF (IHE). The exchange-traded fund has gained about 18.1% over the past year. The ETF’s 10.7% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Oct. 31, BMY shares closed up more than 5% after reporting its Q3 results. Its revenue stood at $11.9 Billion, up 8.4% year over year. The company’s adjusted EPS declined 10% year over year to 1.80. BMY expects full-year adjusted EPS to be between $0.75 to $0.95.
For the current fiscal year, ending in December, analysts expect BMY’s EPS to decline 88% to $0.90 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 25 analysts covering BMY stock, the consensus is a “Hold.” That’s based on four “Strong Buy” ratings, 19 “Holds,” and two “Strong Sells.”
This configuration is less bullish than a month ago, with five analysts suggesting a “Strong Buy.”
On Nov. 5, Leerink Partners analyst David Risinger maintained the “Hold” rating on BMY with a price target of $55.
While BMY currently trades above its mean price target of $53.55, the Street-high price target of $64 suggests an upside potential of 15.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
