BMY Stock Analysis — Bristol Myers Squibb
Sector: Healthcare
AI Verdict
BMY trades at 8.9x next year's earnings while analysts expect nearly 85% EPS growth — that's cheap for the growth on offer if its drug pipeline delivers as expected.
Competitive Moat
Bristol Myers Squibb owns a portfolio of patent-protected drugs in oncology, immunology, and cardiovascular disease, creating high switching costs for doctors and patients. Its deep pipeline and regulatory expertise help defend against generic competition and maintain pricing power.
Summary
BMY's forward P/E of 8.9x and consensus 84.9% EPS growth make it a rare value play in large-cap pharma.
Where It Stands
BMY is up 26.51% over the past year, trades at 8.9x next year's earnings (well below the healthcare sector median of 22x), and its RSI of 59.3 is neutral.
Key Metrics
- RSI: 59.3 — Neutral
- Trailing P/E: 16.4x
- Forward P/E: 8.9x
- PEG Ratio: 0.20
- Earnings Growth: +0.8%
- Revenue Growth: +0.0%
- Market Cap: $119.6B
- Dividend Yield: 0.04%
- 1-Year Return: 26.51%
- 52-Week High: $62.89
- 52-Week Low: $42.52
Analyst Consensus
14 Buy · 20 Hold · 2 Sell (36 analysts)
Bull Case
With analysts forecasting 84.9% EPS growth and a forward P/E of just 8.9x, you're paying a low price for a major earnings rebound.
Bear Case
If the forward P/E reverts even halfway to the sector median (from 8.9x to 15x), the stock could see a sharp correction if earnings disappoint or guidance is cut.
Catalyst to Watch
Upcoming drug trial results or FDA approvals could validate the aggressive EPS growth forecast and reset valuation expectations.