Stock of the Day

July 31, 2023

Bristol Myers Squibb (BMY)

$60.71
+$0.20 (+0.3%)
Market Cap: $124.04B

About Bristol Myers Squibb

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. It also provides Yervoy for the treatment of patients with unresectable or metastatic melanoma; Empliciti for the treatment of multiple myeloma; Abecma for the treatment of relapsed or refractory multiple myeloma; Reblozyl for the treatment of anemia; Opdualag for the treatment of unresectable or metastatic melanoma; and Zeposia to treat relapsing forms of multiple sclerosis. In addition, the company offers Breyanzi for the treatment of relapsed or refractory large B-cell lymphoma; Onureg for the treatment of AML; Inrebic for the treatment of myelofibrosis; Camzyos for the treatment of symptomatic obstructive HCM to enhance functional capacity and symptom; Sotyktu for the treatment of moderate-to-severe plaque psoriasis; Augtyro for the treatment of locally advanced or metastatic ROS1-positive NSCLC; Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; and Abraxane to treat breast cancer, NSCLC and pancreatic cancer. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in Princeton, New Jersey.

Bristol Myers Squibb Bull Case

Here are some ways that investors could benefit from investing in Bristol-Myers Squibb:

  • The current stock price is around $56, which is significantly below its twelve-month high of $62.89, indicating potential for price appreciation.
  • Bristol-Myers Squibb has a strong market capitalization of approximately $123 billion, reflecting its stability and size in the biopharmaceutical sector.
  • The company reported earnings per share of $1.58, surpassing analyst expectations, which demonstrates its ability to generate profits effectively.
  • With a PEG ratio of 0.17, Bristol-Myers Squibb is considered undervalued relative to its growth rate, making it an attractive investment opportunity.
  • The firm has a solid dividend yield of around 4.2%, providing investors with a reliable income stream alongside potential capital gains.

Bristol Myers Squibb Bear Case

Investors should be bearish about investing in Bristol-Myers Squibb for these reasons:

  • The company has a high debt-to-equity ratio of 2.10, indicating that it relies heavily on debt financing, which could pose risks in a rising interest rate environment.
  • Recent quarterly revenue growth was only 2.6% year-over-year, suggesting that the company may face challenges in accelerating its growth rate.
  • With a net margin of 15.01%, there may be concerns about profitability compared to industry peers, which could affect investor confidence.
  • Analysts forecast earnings per share of 6.32 for the current fiscal year, which may not meet the expectations of more aggressive growth investors.
  • The stock has shown relatively low volatility with a beta of 0.23, which may not appeal to investors seeking high-risk, high-reward opportunities.
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