The Best Pharma Stock to Buy in December 2022

The Best Pharma Stock to Buy in December 2022

Bristol-Myers Squibb, a pharmaceutical company, has recently increased its annual dividend. The stock could be a good addition to your portfolio. …. – StockNews

Bristol-Myers Squibb Company is a biopharmaceutical company (BMY) offers products for oncology, hematology and cardiovascular diseases, as well as neurology, COVID-19, and fibrotic diseases. The company had a total of 26 employees as of October 26. 50 compounds in development We have studied 35 diseases.

BMY declared a quarterly dividend of $0.57 per share from its $0.10 common stock. This dividend will be paid to shareholders on February 1, 2023. This is a quarterly dividend of $0.57 per share on its $0.10 par value common stock. It will be payable to shareholders on February 1, 2023. 5.6% increase in year-over-year And marks the 91st Consecutive year of dividend payments.

The current share price yields 2.89% and its annual dividend of $2.28 yields 2.9%. It has a 4.0% average yield over the past four years. Dividend payouts for the company have increased by 9.6% CAGR Over the past three years, and 6.7% CAGR in the past five years.

The stock has increased 39.9% in the past year and 26.4% over the last year to close at $78.83. It has increased 3.8% in the past month. It is trading higher that its 50-day moving mean of $75.70 and its 200-day moving mean of $74.18.

These are the factors that could affect BMY’s performance over the next months:

Solid Financials

For the fiscal third quarter ending September 30, BMY’s worldwide Eliquis revenues increased 10% year-overyear to $2.66 Billion, while its total new product portfolio revenue rose 61% to $553 Million from the previous-year quarter.

BMS contributed 3.9% to net earnings, which rose to $1.61 billion year-over-year. Non-GAAP earnings per share were $1.99, an increase of 3.1% over the previous-year period.

Profitability higher than the industry

BMY’s trailing 12-month gross profit margin is 79.42%, which is 43.7% more than the industry average (55.29%). Its trailing-12 month EBITDA margin is 44.35%, which is significantly higher that the industry average of 3.3%.

Its trailing 12-month ROCE, ROTC and ROTA of 19.11% and 8.22% respectively compares to their respective industry averages, which are negative 39.69% and 21.95%, respectively.

Cheap Valuation

BMY’s forward non-GAAP PE is 10.35x. This is 46.5% lower that the industry average of 19.33x. The forward EV/EBITDA multiple for BMY, 10.10, is 24.5% lower that the industry average of 13.37. The stock’s forward Price/Cash Flow is 10.27x, 39.6% less than the 17.01x industry standard.

The POWR Ratings reflect promising prospects

BMY’s strong foundations are reflected in its Ratings for POWR. The stock has an overall rating A, which corresponds to a Strong Buy according to our proprietary rating system. The POWR Ratings are calculated using 118 factors, each factor being weighted to the best degree.

Our proprietary rating system evaluates each stock using eight different categories. BMY has a Value Grade of A in line with its lower-than industry valuation multiples.

The stock also has a Stability Grade of B, consistent to its five-year beta 0.39. Its solid profitability justifies its B Quality grade.

In the 160-stock Medical – Pharmaceuticals It is ranked #3 in the industry.

Click here Click here to view the additional POWR Ratings of BMY (Growth Momentum and Sentiment).

Check out all the top stocks within the Medical & Pharmaceuticals industry Here.

Bottom Line

BMY, a major pharma player, has a long history paying dividends. This is a testament to its cash-generating ability. Analysts expect that BMY’s EPS will grow by 4.1% per year over the next five-years. BMY could be a solid stock to buy right now, as it is trading above its moving averages, which indicate an uptrend.

How does Bristol-Myers Squibb Company, (BMY), compare to its peers?

BMY has an overall POWR Rating A. However, it might be worth looking at its industry peers, Novo Nordisk (Nova Nordisk A/S) (NVO) and Pfizer Inc.PFE), which also has an overall A (Strong buy) rating.

Premarket trading Monday saw BMY shares rise $0.32 ( 0.41%). Year-to-date, BMY shares have gained 30.89% compared to a -15.92% increase in the benchmark S&P 500 Index during the same period.

About the Author: Anushka Dotti

Anushka is an analyst who was interested in understanding the effects of larger economic changes on financial markets. She decided to pursue a career as an investment researcher.


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