Bristol Myers Squibb (BMY) is a Top-Ranked Momentum Stock: Should You Buy?

According to Zacks, Bristol Myers Squibb (BMY) has a Zacks Rank of #3 (Hold) but is a stock to watch for momentum investors, with a Momentum Style Score of B and a 4.2% increase in share price over the past four weeks. For fiscal year 2025, 11 analysts have revised their earnings estimates upwards in the last 60 days, increasing the Zacks Consensus Estimate to $6.85 per share, and the company boasts an average earnings surprise of 20.2%.

Analysis

Bristol Myers Squibb (BMY) is currently rated as a Zacks Rank #3 (Hold), but exhibits several positive indicators that warrant investor attention, particularly for those with a momentum-oriented strategy. The company scores an 'A' on the comprehensive VGM Style Score and a 'B' for Momentum, reflecting favorable underlying characteristics. This is supported by a 4.2% increase in its share price over the past four weeks. Furthermore, BMY's outlook for fiscal 2025 has seen positive revisions, with 11 analysts revising their earnings estimates upwards in the last 60 days, consequently lifting the Zacks Consensus Estimate by $0.10 to $6.85 per share. The company also boasts a significant average earnings surprise of 20.2%, indicating a track record of outperforming expectations. Strategically, Bristol Myers Squibb is focused on portfolio renewal to mitigate generic competition for legacy drugs like Revlimid, with newer products such as Reblozyl, Breyanzi, Camzyos, and Opdualag contributing to revenue stabilization, while key drug Opdivo maintains its growth trajectory and the company diversifies with immunology and cardiovascular treatments.

Key Decisions for Investors

• Investors, particularly those employing momentum strategies, should note BMY's 'B' Momentum Style Score and recent 4.2% share price appreciation, complemented by positive FY2025 earnings estimate revisions.
• Given the Zacks Rank #3 (Hold) coupled with strong 'A' VGM and 'B' Momentum scores, BMY warrants consideration for watchlists, with a potential upgrade in rank signaling a stronger buy opportunity.
• Closely monitor the company's progress in its portfolio transition, specifically the revenue contribution from new drugs against the backdrop of generic erosion impacting its established products, as this will be key to sustained performance.