Opinions Jim Cramer - Mad Money
Bristol Myers SquibbBMYBUYOct 09, 2024
Jim Cramer - Mad MoneyStock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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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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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.
Stock has been hot since the summer when the new CEO took over, then they got approval for their schizophrenia drugs. (Abbvie's drug failed last month.) But BMY has fallen 9% in the past 4 weeks--maybe because of concerns over the group, not the stock. Trades at only 7.9x PE 2025, and pays a 4.4% dividend which just increased last week. The stock is dirt cheap.
Pays a yield of 4.55% higher than a 10-year treasury note, earnings growth is outsized and is cheaper than the S&P aggregate (under 21x 2025 PE) at 7.6x. They're paying a big charge this year and so are taking a big earnings hit. They projects over 800% earnings growth in 2025. They can deliver on their long-term turnaround plan, but it will take time. But their cancer franchise fell behind Merck's, and $74 billion buy of Celgene wasn't worth it. Also, they face patent cliffs on some of their big drugs. But the new CEO has bought 3 companies, including 2 biotechs focused on cancer drugs. Shares are up 27% this year. They received approval for their key schizophrenia drug, among other approvals. They have enough quality drugs in the pipeline.