Core Viewpoint - The aging U.S. population is a significant driver for the healthcare sector, leading to increased demand for specific healthcare companies that cater to the elderly [1] Group 1: Bristol Myers-Squibb (BMY) - In 2021, the U.S. Medicare program spent $216 billion on subsidized prescriptions for seniors, with BMY receiving $12.6 billion for its blood-thinning drug Eliquis, accounting for over 25% of its $46 billion revenue [2] - The demand for blood thinners is expected to rise as more individuals enter the age bracket where such medications are necessary [2] - Medicare also paid $5.9 billion for BMY's Revlimid, a treatment for multiple myeloma, which is prevalent among seniors [2][3] Group 2: Eli Lilly (LLY) - Eli Lilly's Mounjaro, a weight loss drug, and its Trulicity diabetes drug, which generated $4.7 billion in Part D-covered prescriptions, position the company for long-term success [4] - Eli Lilly has negotiated new pricing with the federal government for its drugs, effective in 2026, which may enhance its sales potential [5] Group 3: Tenet Healthcare (THC) - Tenet Healthcare operates a large and diversified healthcare service network, including over 535 ambulatory surgery centers and 52 hospitals [6] - THC has experienced over 100% share value growth year-to-date and is projected to reach a valuation of $200 per share with continued performance [6][7] - The company is expected to grow as it acquires more facilities to meet the demands of the aging U.S. population [7]

Core Insights - The article compares Bristol Myers Squibb (BMY) and Vertex Pharmaceuticals (VRTX) to determine which stock is a better undervalued investment option [1] - BMY has a stronger Zacks Rank of 2 (Buy) compared to VRTX's Zacks Rank of 3 (Hold), indicating a more favorable earnings estimate revision trend for BMY [1] Valuation Metrics - BMY has a forward P/E ratio of 89.98, while VRTX has a significantly higher forward P/E of 259.45 [2] - The PEG ratio for BMY is 18, compared to VRTX's PEG ratio of 20.29, suggesting BMY may offer better value relative to its expected earnings growth [2] - BMY's P/B ratio is 6, while VRTX's P/B ratio is 6.94, indicating BMY's market value is more favorable compared to its book value [2] Value Grades - BMY holds a Value grade of B, whereas VRTX has a Value grade of D, further supporting the argument that BMY is the superior value option at this time [3] - The improving earnings outlook for BMY enhances its attractiveness in the context of the Zacks Rank model [3]

A lowered outlook for 2024 and upcoming patent expirations have investors concerned about this pharmaceutical giant's dividend program.If you're looking for a way to permanently boost your passive income stream, you've probably seen Bristol Myers Squibb (BMY -2.91%) when you screen for stocks that pay big dividends.At recent prices, the Big Pharma stock offers a 4.7% yield. Unfortunately, dividend payers rarely offer such high yields unless there are reasons to suspect they can't maintain their payout-raisi ...

JHVEPhoto/iStock Editorial via Getty Images Bristol-Myers Squibb Company (NYSE:BMY) crossed $50 / share after a double-digit share price increase on the back of strong earnings. We recently discussed the company, highlighting how shareholders are too focused on the long term instead of celebrating its strength today. The company's recent Q2 earnings highlight how it can drive immediate and strong shareholder returns. Bristol-Myers Squibb 2Q 2024 Performance The company has achieved strong 2Q 2024 perfor ...

Bristol-Myers Squibb Co BMY on Friday reported upbeat second-quarter results.The report came amid an exciting earnings season. Here are some key analyst takeaways.Barclays On Bristol-Myers SquibbAnalyst Carter Gould downgraded the rating to Underweight, while maintaining the price target at $41.Gould explained the downgrade, stating that the recent rally in Bristol-Myers Squibb’s stock, “despite little movement in underlying post-2025 fundamentals,” appears to be “an over-reaction to the IRA news.”The compa ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.Barclays analyst Carter Gould downgraded the rating for Bristol-Myers Squibb Company BMY from Equal-Weight to Underweight and maintained the price target of $41. Bristol-Myers Squibb shares gained 11.4% to settle at $50.45 on Friday. See how other analysts view this stock. See how other analysts view this sto ...

Paul Bradbury/OJO Images via Getty Images Introduction Bristol Myers Squibb (NYSE:BMY) announced its Q2 2024 earnings on Thursday. My previous coverage of BMS was nearly a year ago, following Q2 2023 earnings, which inspired 52-week lows due to concerns about generic competition and patent cliffs. Revlimid, a blockbuster drug for the treatment of multiple myeloma, has seen its revenues fall since a generic version was released in early 2022. At its peak, Revlimid generated more than $10 billion per year ...

With interest rates expected to decline, high-yield dividend stocks offer attractive income potential and possible capital appreciation.Dividend investing has long been a popular strategy for generating passive income and building long-term wealth. High-yield dividend stocks, in particular, can offer attractive returns to investors seeking regular cash flow from their portfolios. These stocks typically pay out a higher percentage of their earnings as dividends compared to the broader market average.Recent e ...

Investment Thesis - Bristol-Myers Squibb (BMY) reported strong Q2 earnings, leading to an 11% stock rally, with significant revenue and EPS surprises [1] - The company exhibits exceptional profitability, enabling growth through acquisitions, innovation, and shareholder returns, with a forward dividend yield of 5% [1] - Valuation analysis indicates that BMY remains undervalued despite recent price increases, leading to a "Strong Buy" recommendation [1] Company Information - BMY is a leading biopharmaceutical company focused on developing medicines for severe diseases, with flagship products Eliquis and Opdivo accounting for approximately 47% of total sales in FY 2023 [2] Financial Performance - BMY's revenue for FY 2023 was $45,006 million, showing a decline from $46,159 million in FY 2022, but still reflecting a strong financial history with a 12.3% CAGR over the last decade [5][6] - The company reported a gross profit margin of 76.6% and a free cash flow margin of 29.5% in FY 2023, indicating strong profitability metrics [6][8] Q2 Earnings Review - In Q2 2024, BMY's revenue grew by 8.9% year-over-year, with flagship products Eliquis and Opdivo showing robust growth [10] - Management raised full-year guidance based on strong Q2 performance, indicating confidence in achieving upper-end revenue growth targets [11][12] Market Position - BMY commands a leading global market share in oncology drugs, with significant investments in R&D expected to support future growth [4][12] - The oncology drug market is projected to grow at an 11.3% CAGR over the next decade, which aligns with BMY's strategic focus [12] Valuation - BMY's stock is considered undervalued, with a fair value estimated at $70, representing a 39% upside potential [17] - The company has a high valuation grade of "A+" from Seeking Alpha, indicating that its ratios are significantly lower than sector medians [13][14] Dividend Policy - BMY maintains a strong dividend policy, with a forward dividend yield of around 5%, supported by a healthy free cash flow margin [8][17]

The pharmaceutical company is faring far better than most investors were anticipating at this point.Bristol Myers Squibb (BMY 9.94%) shareholders are certainly finishing the trading week on a high note. The drugmaker's stock is up 9.6% as of 1:14 p.m. ET, according to data from S&P Global Market Intelligence, in response to a surprisingly strong second-quarter report and subsequently raised full-year guidance.Bristol Myers Squibb is firing on all cylindersGive credit to Bristol Myers Squibb's newer drugs li ...