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Opinions Alex Ruus
Bristol Myers SquibbBMYSELLSep 06, 2016
Stock price when the opinion was issued
As of Aug 28, 2026. Market Open.
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She hopes healthcare stocks rebound; they've been up this year and being beaten down for a long time. BMY is +19% this year. Trades below 10x PE and produce $11 billion free cash flow this year, $15 billion in 2027, pays over a 4% dividend. There's value here. With their cash flow, they can buy their way to growth.
EPS of $1.63 beat estimates of $1.52 and sales of $12.2B beat estimates of $11.8B. Sales grew 3%, and management raised its 2025 revenue guidance to a range of $47.5B to $48.0B. Its growth portfolio sales of newer/higher-growth drugs were up 18% year-over-year, while its legacy portfolio sales were down 12%. These were decent results, and the price action looks decent, we think there is possibility that the name can rebound eventually if its growth portfolio continues to outpace its legacy portfolio.
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EPS of $1.63 beat estimates of $1.52 and sales of $12.2B beat estimates of $11.8B. Sales grew 3%, and management raised its 2025 revenue guidance to a range of $47.5B to $48.0B. Its growth portfolio sales of newer/higher-growth drugs were up 18% year-over-year, while its legacy portfolio sales were down 12%. These were decent results, and the price action looks decent, we think there is possibility that the name can rebound eventually if its growth portfolio continues to outpace its legacy portfolio.
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EPS of $1.63 beat estimates of $1.52 and sales of $12.2B beat estimates of $11.8B. Sales grew 3%, and management raised its 2025 revenue guidance to a range of $47.5B to $48.0B. Its growth portfolio sales of newer/higher-growth drugs were up 18% year-over-year, while its legacy portfolio sales were down 12%. These were decent results, and the price action looks decent, we think there is possibility that the name can rebound eventually if its growth portfolio continues to outpace its legacy portfolio.
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EPS of $1.63 beat estimates of $1.52 and sales of $12.2B beat estimates of $11.8B. Sales grew 3%, and management raised its 2025 revenue guidance to a range of $47.5B to $48.0B. Its growth portfolio sales of newer/higher-growth drugs were up 18% year-over-year, while its legacy portfolio sales were down 12%. These were decent results, and the price action looks decent, we think there is possibility that the name can rebound eventually if its growth portfolio continues to outpace its legacy portfolio.
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They have huge oncology franchise, but face a huge patent cliff. But they have a some promising drugs. He owns this partly for the 5.6% dividend. He took shares off the table when the stock spiked earlier this year, but at current levels, he's watching the price go lower before buying again.
It's turned around in the last 6 months under the new CEO, rallying 40%. In the face of expiring drug patents, they launched a revolutionary schizophrenia drug. He also likes the rest of their pipeline to treat cardiovascular disease and oncology. He bought shares late last year.
A very good, well-run, large cap pharma company. A lot of the big caps have been in the doldrums for the last 10 years, and then in the last 2 years, things have kind of picked up for a bunch of them. This one has probably been the best performer of the old-line pharmas. They have become the leader in the cancer treatment called immunotherapy, probably the most rapidly growing area of cancer. Their immunotherapy had a bad trial on another type of cancer, which threw up some caution signs. A super expensive company trading in the 20+ PE. Prefers other players in the area. He wouldn’t hold this one. (See Top Picks.)