Recently, there was a piece discussing the top trending stocks to keep an eye on in the fourth quarter, and Bristol-Myers Squibb Company (NYSE:BMY) is one of those stocks generating a lot of attention.
Dave Sekera from Morningstar mentioned on a recent Schwab Network show that BMY stands out as one of the top deep value stocks currently available. He highlighted the stock’s dividend yield and valuation in his analysis.
“Well, one of the biggest deep value stocks today is going to be in healthcare, and that’s Bristol-Myers. So it’s a 5-star rated stock, and it’s trading at a 33% discount to its fair value. And it’s trading at less than 8 times our earnings estimates for this year. Well, they’re in some trouble. There are many patents that will expire within the next few years. It’s already built into the modeling. But looking at their pipeline, I don’t think the market is really valuing their existing pipeline. If any of them could become a hit within the next few years, or if some of the existing drugs’ labels get expanded, we think there’s a lot of value in the name.”
PGIM Jennison Health Sciences Foundation also commented on BMY in their Q2 2025 Investor Letter. They described Bristol-Myers Squibb as a global pharmaceutical company focused on the R&D and commercialization of medicines in various therapeutic areas, including cancer and immunology.
Bristol-Myers Squibb Company (NYSE:BMY) has three major blockbuster drugs facing patent expirations in the next decade. Revlimid is set to contend with limited generic competition starting in 2022 and full competition by 2026. Eliquis is included in the first phase of Inflation Control Act negotiations, with price cuts starting January 1, 2026, and potential generic competition by 2028/29. Opdivo will see biosimilar competition beginning in 2029, although BMY has recently introduced a subcutaneous version to retain part of the market. We initially invested in BMY last spring because it looked significantly undervalued. However, as the stock rose and the valuation gap narrowed, we decided to book profits in early 2025. Later, I sold the stock at an even higher price due to skepticism surrounding its latest performance, particularly after two disappointing updates on trials for Camzyos and Cobenfy. These concerns, combined with a less-than-stellar quarter, led to a decline in the stock. Following our first-quarter earnings, we exited our final position.”
