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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 $98.7 billion, the company focuses on products and experimental therapies that address cancer, heart disease, HIV and AIDS, diabetes, rheumatoid arthritis, hepatitis, organ transplant rejection, and psychiatric disorders.
Companies worth $10 billion or more are generally described as “large-cap stocks.” BMY effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the general drug manufacturing industry. BMY's commitment to innovation is evident in its dynamic drug pipeline, and its focus on immuno-oncology has resulted in a suite of pioneering treatments that have become standard care in various cancers. This innovation-driven approach not only solidifies BMY's brand but also ensures a steady stream of revenue through patented drugs, contributing to its competitive advantage.
Despite its notable business strengths, BMY slipped 21% from its 52-week high of $61.42, achieved on Sep. 11, 2023. Over the past three months, BMY stock has gained 16.9%, outperforming the S&P 500 Index’s ($SPX) 2.3% gains during the same time frame.
In the longer term, shares of BMY have dipped 5.5% on a YTD basis and 20.3% over the past 52 weeks, underperforming $SPX’s YTD gains of 14.7% and solid 22.7% returns over the last year.
To confirm the bearish trend, BMY has traded below its 20-day moving average since mid-August, with slight fluctuations recently. However, the stock is trading above its 200-day moving average and has experienced few fluctuations.
BMY's recent performance has been impacted by the loss of market exclusivity for its key medication, Revlimid, leading to a significant decline in sales. The company also faced challenges with its chemotherapy drug Abraxane. To overcome these obstacles and replace lost revenue, BMY underwent internal realignment. The company recorded a significant charge of $12.9 billion related to an acquisition in the first quarter, further affecting earnings.
On Jul. 26, BMY shares rallied more than 11% after reporting its Q2 results. Its adjusted EPS of $2.07 beat Wall Street expectations of $1.64. The company’s revenue was $12.2 billion, beating Wall Street forecasts of $11.5 billion.
In the competitive arena of general drug manufacturers stocks, AbbVie Inc. (ABBV) has taken the lead over BMY, showing resilience with a 26.8% uptick on a YTD basis and solid 31.8% gains over the past 52 weeks.
Wall Street analysts are cautious about BMY’s prospects. The stock has a consensus “Hold” rating from the 23 analysts in coverage, and the mean price target of $52.60 suggests a potential upside of 8.5% from current price levels.
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.
