Bristol Myers Squibb stock faces challenges in rebounding to $80 highs, with uncertain market conditions
From Nasdaq, Inc.: 2024-06-27 01:08:18
Bristol Myers Squibb stock (NYSE: BMY) is currently trading at $42 per share, 47% below its high of $80 in June 2022. The stock underperformed due to declining revenues and slashed guidance for 2024. To reach pre-inflation shock levels, BMY stock would need to gain 90%, which seems unlikely in the near term.
BMY stock has shown inconsistent returns, with 2021 at 1%, 2022 at 15%, and 2023 at -29%. Over the same period, the S&P 500 had returns of 27%, -19%, and 24%, showing BMY’s underperformance. The Trefis HQ Portfolio, however, outperformed the S&P 500 each year with less risk.
In response to current economic uncertainties, BMY stock may face challenges but also opportunities for growth, with a valuation estimate of $50 per share. The 2022 Inflation Shock has impacted markets, with the Fed’s rate hikes causing fluctuations in stock performance.
During the 2007/2008 crisis, BMY stock declined but eventually recovered, while the S&P 500 saw a more significant decline and subsequent rally. The company’s fundamentals, including revenue and earnings, have had ups and downs in recent years.
Bristol Myers Squibb’s debt has increased, but its cash flows suggest it can meet obligations. The stock has potential for gains as macroeconomic factors improve, though risks remain. BMY expects lower earnings in 2024 due to acquisitions, which may already be factored into its current price.
In terms of returns, BMY stock has seen a 3% return in June 2024, -18% YTD, and -28% over 2017-24. Comparatively, the S&P 500 has had a 3% return in June 2024, 14% YTD, and 144% over 2017-24.
Considering market-beating portfolios, BMY stock’s potential for growth should be weighed against economic factors and company performance. The analysis points to BMY stock facing challenges but also opportunities for recovery amidst uncertain market conditions.
Read more at Nasdaq, Inc.: Will Bristol Myers Squibb Stock Rebound To Its 2022 Highs of $80?