Even the most dedicated income investors often avoid healthcare titles, especially those in the high-capital-expenditures pharmaceutical sector. As ever, though, we can find exceptions. Here's a brief look at two that buck the sector's general trend by not only paying dividends regularly, but also raising them on a consistent basis. Say hello to AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Will AI create the world's first trillionaire? Our team just released a report on the one little-known ...

These 3 Stocks Trigger Bearish Signals but 2 Offer Hidden Opportunity - 24/7 Wall St. S&P 5006,581.20 -0.61% Dow Jones45,907.50 -0.48% Nasdaq 10024,237.20 -0.77% Russell 20002,445.53 -1.09% FTSE 1009,998.80 -2.24% Nikkei 22552,150.50 -2.69% Investing These 3 Stocks Trigger Bearish Signals but 2 Offer Hidden Opportunity By Trey ThoelckePublished Mar 19, 9:10AM EDT Quick Read Bristol Myers Squibb (BMY) reported Q4 2025 non-GAAP EPS of $1.26, missing consensus by 22.7% due to a $1.39B acquired IPRD charge, whi ...

Boring is beautiful. That adage is especially true during turbulent times. If you haven't noticed, the current market and world conditions are quite tumultuous.In a highly volatile market, boring dividend stocks can be the ultimate defensive play. Bristol Myers Squibb (BMY 0.17%) is such a stock. It has delivered a double-digit year-to-date gain while the S&P 500 (^GSPC +0.25%) has fallen. I'd happily hold Bristol Myers Squibb through any crash.NYSE : BMYBristol Myers SquibbToday's Change( -0.17 %) $ -0.10C ...

Core Insights - Bristol Myers Squibb (BMY) reported positive interim results from the late-stage SUCCESSOR-2 study, evaluating mezigdomide in combination with carfilzomib and dexamethasone for relapsed or refractory multiple myeloma (RRMM) patients [1][3] Group 1: Study Results - The SUCCESSOR-2 trial demonstrated that oral mezigdomide combined with carfilzomib and dexamethasone significantly improved progression-free survival compared to carfilzomib and dexamethasone alone in RRMM patients [3][10] - This study marks the first positive phase III trial for mezigdomide and the second successful phase III study for BMY's CELMoD program, reinforcing confidence in the company's targeted protein degradation platform [4][10] Group 2: Market Context - Despite advancements in treatment, multiple myeloma remains incurable, leading to strong demand for new therapies, particularly those effective after prior treatments [5] - Mezigdomide is designed to be more effective than earlier immunomodulatory drugs, potentially offering a convenient oral treatment option for patients previously treated with therapies like anti-CD38 antibodies and lenalidomide [6] Group 3: Company Strategy - BMY is looking to diversify its portfolio as its legacy drugs, such as Revlimid, face generic competition, which pressures revenue growth [7] - The successful development of mezigdomide could significantly boost the company's position in the market [7][10] - BMY's targeted protein degradation platform includes various investigational approaches aimed at tackling disease-driving proteins previously considered difficult to target [8] Group 4: Future Prospects - Patients in the SUCCESSOR-2 study will continue to be monitored for overall survival and long-term safety outcomes, with data to be presented at future medical meetings [4] - Mezigdomide is also being evaluated in other combinations in ongoing phase III studies, indicating a robust pipeline for BMY [9]

Core Insights - The company delivered strong performance in 2025, with good momentum heading into 2026, particularly from its growth portfolio [1] - Key products such as Reblozyl, Breyanzi, and Camzyos performed well and are expected to continue contributing to growth [1] - The company is in the second year of launches for Cobenfy and Opdivo Qvantig, which will also support growth [1] - There are headwinds due to the presence of generics for Revlimid and Pomalyst in the market, impacting the legacy portfolio [1] - Significant growth is anticipated for Eliquis, with expectations of double-digit growth this year [2]

Core Viewpoint - Bristol-Myers Squibb Company (BMY) is a leading global biopharmaceutical company with a market cap of $124.4 billion, focusing on innovative medicines across various therapeutic areas [1]. Company Overview - BMY operates in oncology, hematology, immunology, cardiovascular disease, and neuroscience, with notable products including Opdivo, Eliquis, Revlimid, and Yervoy [1]. - The company is classified as a "large-cap" stock, serving patients through a wide commercial network that includes wholesalers, distributors, specialty pharmacies, hospitals, clinics, and government agencies [2]. Stock Performance - BMY shares have decreased by 2.2% from their 52-week high of $63.33, but have increased by 25.2% over the past three months, outperforming the Nasdaq Composite's decline of 2.5% during the same period [3]. - Year-to-date, BMY stock is up 14.3%, while the Nasdaq Composite has seen a decrease of 2.6%. However, over the past 52 weeks, BMY shares have only risen by 4.9%, lagging behind the Nasdaq's return of 22.1% [6]. Financial Outlook - On February 5, BMY shares rose by 3.3% after the company projected 2026 revenue between $46 billion and $47.5 billion, exceeding Wall Street expectations, and adjusted EPS of $6.05 to $6.35, also above consensus estimates [7]. - The management's outlook includes a forecasted revenue growth of 10% to 15% for Eliquis in 2026, despite challenges from Medicare price negotiations [7]. - Q4 2025 results showed adjusted EPS of $1.26, revenue of $12.5 billion, and a 9% increase in Opdivo sales to $2.69 billion, alongside $1 billion achieved from a planned $2 billion cost-cutting program [8].

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry [2] Core Insights - 2025 saw a record high in innovative drug asset transactions among multinational pharmaceutical companies, with 142 cases and a total transaction value of $264.5 billion, marking new highs since 2015 [3][9] - Eli Lilly's revenue for 2025 increased by 44% year-on-year, driven by GLP-1 drugs, with Tirzepatide achieving $36.5 billion in sales [3][39] - Novo Nordisk's sales growth was impacted by increased competition in the weight loss drug market, with a projected revenue decline of 5% to 13% for 2026 [3][40] Summary by Sections 1. Innovative Drug Asset Transactions - In 2025, the number of innovative drug transactions reached 142, with mergers and acquisitions (M&A) and collaborations at 36 and 106 respectively, both setting new records since 2015 [3][9] - The total transaction value was $264.5 billion, with M&A accounting for $106 billion and collaborations for $158.4 billion, also new highs since 2015 [3][9] 2. Performance Review of Pharmaceutical Companies - Eli Lilly's total revenue for 2025 was $65.2 billion, with a guidance of $80 billion to $83 billion for 2026, indicating a projected growth of 25% [3][39] - Novo Nordisk's revenue for 2025 was 309.1 billion Danish Krone, with a guidance for 2026 indicating a decline of 5% to 13% [3][40] - Other companies like AbbVie, AstraZeneca, and Roche reported single-digit growth, while JNJ and Gilead faced challenges due to patent expirations [3] 3. Factors Influencing M&A Decisions - Demand for acquisitions is driven by the need to address revenue gaps from expiring patents and declining R&D efficiency [3][19] - Financial capacity for M&A is supported by free cash flow after shareholder returns, allowing for smaller acquisitions [3][20] - Pricing considerations are crucial, as the valuation of innovative drug assets significantly impacts the internal rate of return (IRR) for acquisitions [3][21]

Core Viewpoint - The pharmaceutical industry is facing significant challenges due to patent expirations, particularly impacting Bristol Myers Squibb, which is experiencing a steep patent cliff that is affecting its stock performance [1][2][4]. Patent Cliff Impact - Bristol Myers Squibb's stock is down over 25% from its peak due to the impending patent expirations of key drugs, leading to a potential decline in sales [2][4]. - The company anticipates a 48.9% drop in Revlimid sales to $2.9 billion and a 61.7% decrease in Sprycel sales to $493 million by 2025 [4]. - The patents for top-selling drugs Eliquis and Opdivo will expire between 2027 and 2029, which together generated $24.4 billion in sales in 2025, approximately half of the company's total revenue [4]. Growth Potential - Excluding Opdivo, Bristol Myers Squibb's growth portfolio saw a 23% increase in sales, reaching $16.3 billion in 2025 [5]. - Cobenfy, a new antipsychotic drug for schizophrenia, is in phase 3 trials for Alzheimer's-related psychosis, with potential annual sales of $3.4 billion by 2030 if approved [5]. Financial Metrics - Bristol Myers Squibb has a market capitalization of $124 billion, with a current stock price of $60.66 and a dividend yield of 4.10% [6][7]. - Analysts project a decline in total sales from $48.2 billion in 2025 to $45.2 billion by the end of 2027, with earnings expected to remain flat in 2026 [7][8]. Investment Considerations - The current dividend is considered safe, costing less than half of the company's earnings, which may provide stability during business contractions [8]. - The stock is trading at less than 10 times this year's earnings estimates, reflecting the market's awareness of the patent cliff [8]. - If Cobenfy succeeds, it could offset the lost sales from Eliquis and Opdivo, potentially leading to business growth and a rise in stock valuation [9].

Group 1: Market Overview - The average forward price-to-earnings ratio (P/E) for the S&P 500 index is currently 21.5, significantly higher than the 10-year average of 17.6, indicating a challenging environment for finding bargains in the stock market [1] Group 2: Enterprise Products Partners - Enterprise Products Partners is a large midstream energy company with a diverse portfolio that includes pipelines, storage facilities, and deepwater docks [5] - The midstream segment of the energy sector is generally more stable than upstream and downstream segments due to long-term contracts and the facilitation of energy asset movement [6] - Enterprise has maintained consistent profitability with net margins over 10% and strong operating cash flow, allowing for substantial capital expenditures, projected between $2.5 billion and $2.9 billion this year [7] - Despite a recent increase in share price, Enterprise's stock remains relatively inexpensive with a forward P/E just above 13 and a dividend yield of nearly 5.9%, which is more than five times the average yield of S&P 500 components [8] Group 3: Bristol Myers Squibb - Bristol Myers Squibb is undergoing a business transformation as it shifts from reliance on blockbuster drugs like Revlimid and Eliquis, which are now part of its "legacy" portfolio, to a focus on its "growth" portfolio, particularly cancer treatment Opdivo [9][10] - The revenue from the growth portfolio increased by 16% year over year in the fourth quarter of 2025, indicating potential for future growth despite challenges from expiring patents on legacy drugs [10]

Core Insights - Bristol Myers Squibb's (BMY) revenue performance in 2025 shows a transition with growth from new products offsetting declines in legacy drugs [1][9] - Total revenues were flat year over year, with a 17% increase in sales from the growth portfolio and a 15% decline in legacy products due to generic competition [1][9] Legacy and Growth Portfolio - The legacy portfolio, including drugs like Eliquis, Revlimid, Pomalyst, Sprycel, and Abraxane, is under pressure due to loss of exclusivity for four drugs [2] - The growth portfolio, featuring drugs such as Opdivo, Opdivo Qvantig, Orencia, and others, is crucial for maintaining revenue stability [2] Immuno-Oncology and Key Drug Performance - The immuno-oncology (IO) portfolio, particularly Opdivo, continues to show strong sales momentum due to label expansions and market share growth [3] - Opdivo Qvantig's approval has contributed to growth, with robust initial uptake across approved tumor types in the U.S. [4] - Reblozyl has achieved an annualized sales run rate above $2 billion, while Breyanzi has surpassed $1 billion in annualized sales [5] Future Outlook and Competition - Management anticipates a further decline of 12-16% in legacy sales for 2026, guiding revenues to $46.0-$47.5 billion [7] - BMY faces increasing competition in oncology from companies like Merck, particularly with the success of Keytruda [8][10] Market Performance and Valuation - BMY's shares have gained 12.7% over the past year, compared to the industry's growth of 19.6% [13] - The company is trading at a price/earnings ratio of 9.80x forward earnings, which is lower than the large-cap pharma industry's average of 18.82x [14] Earnings Estimates - The Zacks Consensus Estimate for 2026 EPS has increased to $6.15 from $6.04, while the estimate for 2027 has risen to $5.94 [17]