The better pick?

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let’s take a closer look at each.

Analysts’ recommendations and target prices

Most analysts recommend “buy” for Pfizer and Bristol-Myers Squibb. Of the 16 analysts covering Pfizer, two recommend “strong buy,” seven recommend “buy,” six recommend “hold,” and one recommends “strong sell.” They increased their average target price from $44.14 in March to $44.36 in April, $45.08 in May, and to $45.57 in June, and their most recent target implies a 4.76% upside based on its June 19 closing price. Their highest and lowest targets are $53 and $36.

Of the 15 analysts covering Bristol-Myers Squibb, three recommend “strong buy,” four recommend “buy,” and eight recommend “hold.” They increased their average target price from $57 in March to $57.90 in April, but then reduced it to $56.33 in May and $56.30 in June, which implies a 15.82% upside from its June 19 price. Their highest and lowest targets are $70 and $48.

Stock price movement and valuation

Pfizer stock closed at $43.50 yesterday, 1% higher than its previous close, 21.27% higher than its 52-week low of $35.87, and 6.39% lower than its 52-week high of $46.47. The company’s market capitalization is $245.12 billion, and its PE, forward PE, PEG (PE-to-growth), PS (price-to-sales), PB (price-to-book), and PC (price-to-cash) ratios are 24.09x, 14.20x, 4.97x, 4.55x, 4.17x, and 21.10x, respectively.

Bristol-Myers Squibb closed at $48.61 yesterday, 1.72% higher than its previous close, 9.73% higher than its 52-week low of $44.30, and 23.68% lower than its 52-week high of $63.69. The company’s market capitalization is $79.43 billion, and its PE, forward PE, PEG, PS, PB, and PC ratios are 15.39x, 10.96x, 2.90x, 3.41x, 5.22x, and 9.06x, respectively. Pfizer has higher PE, forward PE, PEG, PS, and PC ratios than Bristol-Myers Squibb, but a lower PB ratio.

Latest articles

President Trump eased the Huawei ban on June 28. Since then, investors have been closely monitoring how US officials implement the policy change.

Norfolk Southern will report its second-quarter earnings results on Wednesday. The company is expected to report an adjusted EPS of $2.79.

Dish Network’s (DISH) wireless business is currently in the making, as cord cutting has hit US satellite pay-TV providers harder than their cable counterparts.

Halliburton (HAL) reported its second-quarter earnings on Monday before the markets opened. The company's earnings rose sequentially.

David Rosenberg said that earnings are “rolling over” and economic data indicates that the economy is very close to recession.

22 Jul

Starbucks to Report Double-Digit EPS Growth in Q3

WRITTEN BY Rajiv Nanjapla

Starbucks (SBUX) is scheduled to report its fiscal 2019 third-quarter earnings results after the market closes on July 25.