Bristol Myers Squibb stock outperforms S&P 500 despite tariffs, facing revenue challenges

From Nasdaq: 2025-03-05 23:07:36

Bristol Myers Squibb (BMS) stock has risen 7% this year, outperforming the S&P 500 despite new U.S. tariffs. Factors contributing to BMS’s performance include a 5% revenue increase to $48.3 billion, a 6% decrease in outstanding shares, and a 17% drop in P/S ratio to 2.5x. Investors are assessing market crash risks amid economic uncertainties caused by tariffs.

BMS faces revenue challenges due to declining sales of legacy drugs like Revlimid, but Eliquis sales of over $13 billion provide balance. Competition looms for Eliquis with biosimilars in 2028. BMS expects Camzyos to offset Eliquis decline and projects new drugs to exceed $1 billion in sales by 2026. Strategic acquisitions, including Cobenfy, aim to boost growth.

Since 2022, BMS has reduced outstanding shares from 2.15 billion to 2.03 billion through $13 billion in buybacks, with $5 billion authorized for future repurchases. Despite increased revenues, BMS faces valuation pressures due to declining blockbuster drug sales and anticipated generic competition for Eliquis, leading to a 6% revenue decline forecasted for the current year.

BMS stock currently trades at approximately $60 per share, at 2.5 times its trailing revenues, slightly below its five-year average P/S ratio of 2.6. The stock is forecasted to be valued around $61 per share. While new drug approvals offer potential upside, the company’s financial outlook is dominated by the revenue impact of declining legacy drug sales, overshadowing long-term growth prospects.

In March 2025, BMS stock has returned 7% year-to-date, outperforming the S&P 500’s -1%. The Trefis Reinforced Value Portfolio has delivered a 658% cumulative total return since 2016, compared to 161% for the S&P 500. Investing with Trefis offers access to market-beating portfolios with a track record of superior returns.



Read more at Nasdaq: Why Bristol Myers Squibb Stock Didn’t Ride The Market Wave?