BMY vs. VRTX: Which Stock Should Value Investors Buy Now?

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]