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Bristol Myers Squibb (NYSE:BMY) 13 April 2021

Updated: Aug 1, 2021




Warren Buffet made some news recently when he added exposure to some pharmaceutical stocks, you can click on the link to read up more: https://www.fool.com/investing/2021/02/23/warren-buffett-just-bought-these-2-dirt-cheap-stoc/

One of the stock, Bristol Myers Squibb (NYSE:BMY) stood out to me with its attractive valuation and superb performance in recent years. On the left side of the above Chart, you can see the monthly chart of BMY's P/S (price to sales) & P/B (price to book) trading at almost decade low valuation.

Despite its share price trading below 2016’s high, its business’ economics is performing superbly as it doubled its revenue and 10x its FCF (free cash flow) over the same period.

Based on analysts’ projection of 20% average yearly revenue growth for the next 5 years, we can work forward and target price range of $110-$150 in 5 years’ time, based on current valuation.

On its daily chart (see right side of above Chart), share price had been consolidating in an upward sloping channel and volume analysis had indicated possible accumulation since early 2020. Short-term traders can take guidance from the chart formation and watch out for support level of $58 and resistance of $70.


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Disclaimer:

This is an opinion piece. Please always do your own due diligence on the company's fundamentals & assess if the Fundamental / Technical analysis opinions are applicable to your trading/investing needs.


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