Bristol-Myers Squibb (BMY, $61.31) Q2 earnings exceed expectations

Bristol-Myers Squibb Co. reported second quarter earnings that exceeded analysts’ expectations.  The pharmaceutical company also raised its full-year earnings outlook.

The company's non-GAAP earnings for the three months ending June came in at $1.63 per share, ahead of the Street consensus estimate of $1.48 per share . The figure is +38.1% higher from the year-ago quarter.  

Revenues surged +61% to $10.13 billion, beating analysts' forecasts of $9.97 billion.

Looking ahead, Bristol-Myers said it projects its full-year non-GAAP earnings in the range of $6.10 to $6.25 per share, compared to a prior forecast of $6.00 to $6.20. It sees revenues in the range of $40.5 billion to $42 billion.

According to Tickeron's analysis, BMY's 10-day Moving Average crossed above its 50-day Moving Average on July 24, 2020

This price move may be construed as a buy signal, indicating that the trend is shifting higher. In 10 of 13 cases where BMY's 10-day Moving Average crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 77%.

Current price $61.17 crossed the support line at $60.92 and is trading between $63.29 support and $60.92 support lines. Throughout the month of 07/06/20 - 08/05/20, the price experienced a -0.83% Downtrend, while the week of 07/29/20 - 08/05/20 shows a +0.91% Uptrend.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where BMY's MACD histogram became positive, in 29 of 44 cases, the price rose further within the following month. The odds of a continued Uptrend are 66%.

The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 25 of 36 similar backtested cases where BMY's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 69%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BMY advanced for three days, in 223 of 346 cases, the price rose further within the following month. The odds of a continued Uptrend are 64%.

Bearish Trend Analysis

The Stochastic Indicator may be shifting from an Uptrend to a Downtrend. In 35 of 67 cases where BMY's Stochastic indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 52%.

The Momentum Indicator moved below the 0 level on July 29, 2020. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 47 of 77 cases where BMY's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 61%.

The 50-day Moving Average crossing below its 200-day Moving Average indicates a sell signal, due to the trend repositioning lower. In 2 of 4 cases where BMY's 50-day Moving Average crossed below its 200-day Moving Average, its price fell further within the subsequent month. The odds of a continued Downtrend are 50%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 19 of 40 cases where BMY's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 47%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 88%. During the last month, the daily ratio of advancing to declining volumes was 1.68 to 1.

The Tickeron Valuation Rating of 3 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.71) is normal, around the industry mean (2.64). P/E Ratio (73.78) is within average values for comparable stocks, (147.98). Projected Growth (PEG Ratio) (0.05) is also within normal values, averaging (34.43). BMY's Dividend Yield (2.62) is considerably higher than the industry average of (0.26). P/S Ratio (4.06) is also within normal values, averaging (227.23).

The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating steady price growth. BMY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 55 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BMY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.