If You Care About Earnings, You Won't Want to Miss These
I selected the top most potentially market moving companies to concentrate on. My previous earnings preview focus was "Microsoft Is a Buy Before Earnings Release." Inside this preview, I will include specific companies that I may trade myself.
Bristol-Myers Squibb, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide.
52-Week Range: $30.64 to $41.79
Price To Book: 4.9
I wrote several bullish Bristol-Myers articles over the last year, and I remain optimistic. My latest article about this pharmaceutical targets the attractive dividend yield. "Three Dividend-Paying Value Stocks"
Bristol-Myers retraced slightly, but has yet to provide an entry in the upper $39s. We may receive an opportunity after reporting. Bristol-Myers Squibb is forecast to report weak first-quarter earnings before the market opens on Thursday.
The consensus estimate is currently 41 cents a share, falling 23 cents (35.9%) from 64 cents during the same period last year. The lowest analyst estimate for this report is 36 cents per share, and the highest is 45 cents per share.
Currently 13 out of 21 analysts rate the company a hold, while seven recommend buying and one recommends selling. Analysts may have missed a good one. In the last 12 months, the shares have substantially appreciated. The one year return is 22 percent, and the average analyst target price for Bristol-Myers Squibb is below the current market price at $37.28. The highest target is $45 with a low target of only $26.
The technical analysis appears strong. A rising 60-day moving average is above a rising 200 day moving average. Bristol-Myers is in a typical bull trend. Trend followers watch for this pattern and will hold a position until a technical break results in a signal to leave.
Bristol-Myers distributes $1.40 a year in dividends for an appealing yield of 3.4%. The combination of a large yield with strong fundamentals is why I featured it in the previously mentioned article. I believe they will beat the earnings estimate, but regardless, Bristol-Myers has the makings for a strong long-term hold.
At the time of writing and from the current short interest report, the short interest is slight and not a source of distraction. The small amount of short interest is 2.1%.