BMY

Bristol-Myers Squibb Company

71.45
USD
0.34%
71.45
USD
0.34%
53.22 80.59
52 weeks
52 weeks

Mkt Cap 159.61B

Shares Out 2.23B

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2 No-Brainer Bio-Tech Stocks to Buy Right Now

It can be scary to put your hard-earned money into a bear market. But it is the right time for growth-oriented investors with a long-term horizon to pounce. Interestingly, there are some stocks, such as biotech companies Exelixis (NASDAQ: EXEL) and Bristol-Myers Squibb (NYSE: BMY), that are in the limelight by defying the bear market. While the S&P 500 has plunged 13% so far this year, the shares of Exelixis and Bristol-Myers have surged 15% and 23%, respectively. Let's dive into what these two biotechs have going for them that is attracting investors. This biotech company's attempt to address hard-to-treat cancers -- by using gene therapies -- is what's driving growth. Exelixis' star drug product is Cabometyx (cabozantinib), which treats advanced renal cell carcinoma (RCC), a type of kidney cancer, and some forms of liver cancer. The drug is also used in combination with Bristol-Myers' drug Opdivo (nivolumab) to treat advanced RCC in patients who haven't received any prior treatment for the disease. Cabometyx brought in $1 billion of revenue in 2021. In its recent second quarter, it contributed the highest amount (around $339 million) to total revenue. Another formulation of cabozantinib, Cometriq, used for the treatment of thyroid cancer, also contributed around $7.9 million in the quarter. Total revenue for the quarter jumped to $419 million versus $385 million in Q2 2021. Adjusted net income, however, fell to $90 million from $118 million in the prior quarter. What's more, Cabometyx is undergoing many other clinical trials to be used as a stand-alone therapy or a potential combination treatment that could continue to drive revenue for the company. Despite the success of its star drug, Exelixis' management understands the risks of relying on just one product for success. In the second half of the year, the company says it expects positive results from its "growing pipeline of clinical compounds, including XL092, XB002, XL102, and XL114." For 2022, the company expects revenue to be in the range of $1.5 billion to $1.6 billion. I believe the company's current products and future drugs in the pipeline will reap huge rewards over the long term. Exelixis ended the quarter with cash, cash equivalents, restricted cash equivalents, and investments of $2 billion, plenty to support its pipeline progress. Bristol-Myers Squibb In November 2019, Bristol-Myers closed on its acquisition of biotech powerhouse Celgene, which specializes in cancer therapies and treatments for autoimmune diseases. The move has boosted its portfolio by adding quality drugs, including cancer treatments Revlimid, Pomalyst/Imnovid, Abraxane, and Reblozyl as well as bone marrow disorder treatment Inrebic. Besides these, Bristol-Myers has its own impressive set of products that drove its Q2 revenue. Its anticoagulant drug Eliquis saw an impressive 17% jump in sales to $6.4 billion, while Revlimid, which treats multiple myeloma, contributed the second-highest amount with $5.2 billion in sales. Orencia, which treats moderate to severe rheumatoid arthritis, saw a sales increase of 8% from the year-ago period, to $1.6 billion. Total revenue in Q2 jumped 6% to $23 billion from the prior-year period. Meanwhile, adjusted earnings per share (EPS) jumped 18% to $1.90 per share. Bristol-Myers faces the challenge of patent expirations for most of its strongest products, like Eliquis, Opdivo, Pomalyst, Revlimid, and Yervoy, in the next few years. It might also concern investors that management slashed its 2022 guidance, expecting EPS in the range of $2.71 to $3.01 compared to the prior estimate of $2.92 to $3.22. But a sound pipeline of new quality drugs should keep it strong going forward, even during a choppy market. Management believes its new portfolio of drugs has the "potential to generate greater than $25 billion in revenue on a non-risk-adjusted basis in 2029." An added perk is that the company is also a dividend stock, yielding 3%, double the S&P 500's yield of 1.5%. The long-term perks of investing in healthcare Healthcare is one sector that will never run out of demand. Biotech companies in particular, whose businesses rely solely on manufacturing drugs for various chronic and deadly diseases, will keep driving revenue and profits. Oncology is a competitive sector, but it is also the fastest-growing one. According to Precedence Research, the oncology market could grow at a compound annual rate of 8% to $536 billion by 2029. This is why I believe investing in these two biotech stocks now will be highly rewarding over the long haul. 10 stocks we like better than Exelixis When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Exelixis wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of July 27, 2022 Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool recommends Exelixis. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Today’s Big Picture Asia-Pacific equity indexes ended today’s session down across the board. India’s Sensex ended the day essentially flat, down 0.06%, China’s Shanghai Composite and Australia’s ASX All Ordinaries declined 0.54% and 0.55%, respectively while Japan’s Nikkei fell 0.65%, Taiwan’s TAIEX dropped 0.74% and South Korea’s KOSPI declined 0.90%. Hong Kong’s Hang Seng led the way, down 1.96% on a broad selloff led by Health Technology and Health Services names while Transportation and Communications sectors provided the only relief. By mid-day trading, major European equity indices are down across the board and U.S. futures point to a positive open later this morning. At 8:30 AM ET, the much anticipated July Consumer Price Index (CPI) report was released: The headline figure for the month was expected to fall to 8.7% from June’s blistering 9.1% reading with core CPI that excludes food and energy ticking higher to 6.1% in July vs. 6.0% the prior month. The actual numbers show that inflation hit 8.5%, and core inflation was 5.9%. With the national average retail price for a gallon of gas falling through late June and July from its June 14 high of $5.016 per gallon per data from AAA, forecasters had expected the month over month decline in the headline CPI for July. The July Employment Report also showed wage inflation ran hotter than expected during the month. Let’s also keep in mind that we will be facing a “wash, rinse, repeat” cycle when it comes to inflation data and expectations for the Fed given tomorrow’s July Producer Price Index report. Data Download International Economy Producer prices in Japan rose by 8.6% YoY in July, compared with market forecasts of 8.4% and following an upwardly revised 9.4% the prior month. While marking the 17th straight month of producer inflation, the latest reading was the softest since last December. China's annual inflation rate rose to 2.7% in July from 2.5% in June and compared with market forecasts of 2.9% but even so the July figure marked the highest reading in the last year. The country’s Producer Price Inflation figure for July eased to a 17-month low of 4.2% YoY from 6.1% the prior month and less than the market consensus of 4.8%. Annual inflation rate in Germany was confirmed at 7.5% YoY for the month of July, down slightly from June’s 7.6% reading but still above the March and April figures of 7.3%-7.4%. The annual inflation rate in Italy slowed to 7.9% YoY in July from June’s 8% reading matching expectations for the month. While energy prices declined, prices for food and transportation rose at a faster pace. Domestic Economy This morning we have the usual Wednesday weekly reports for MBA Mortgage Applications and Crude Oil Inventories from the U.S. Energy Information Administration. At 10 AM ET, Wholesale Inventories for June will be published, and the figure is expected to rise 1.9%. While investors and economists will keep more than a passing interest in those reports and data, as we discussed above, it will be the July Consumer Price Index report at 8:30 AM ET that will shape not only how the US stock market opens today, but also expectations for the Fed’s next course of monetary policy action. The U.S. Energy Information Administration (EIA) expects domestic production of crude oil, natural gas and coal will all increase next year compared with this year. It forecast US crude production rising 6.7% to an all-time annual high 12.7M bbl/day in 2023 from 11.9M bbl/day in 2022, US natural gas output climbing to 100B cubic feet (cf)/day from 97B cf/day, and US coal production inching up to 601M short tons in 2023 from an expected 599M this year. The EIA also modestly increased its 2022 average nationwide gasoline price forecast to $4.07/GALLON vs. $4.05 if called for last month. It now also sees 2023 prices at $3.59/GAL vs. its previous forecast of $3.57. Markets Stocks continued in their holding pattern waiting for the latest CPI print save for some fundamental stories pushing Technology names and small caps around. The Dow and the S&P 500 were down slightly at 0.18% and 0.42%, respectively while the Nasdaq Composite dropped 1.19% and the Russell 2000 closed down 1.46% on the day. Energy names led the way yesterday but were overpowered by Technology and Consumer Discretionary sectors. Here’s how the major market indicators stack up year-to-date: Dow Jones Industrial Average: -9.81% S&P 500: -13.51% Nasdaq Composite: -20.14% Russell 2000: -15.83% Bitcoin (BTC-USD): -52.08% Ether (ETH-USD): -55.38% Stocks to Watch Before trading kicks off, CyberArk (CYBR), Fox Corp. (FOXA), Jack in the Box (JACK), Nomad Foods (NOMD), Vita Coco (COCO), Tufin Software (TUFN), and Wendy’s (WEN) will be among the companies issuing their latest quarterly results and guidance. At 9 AM ET, Samsung (SSNLF) will hold its Galaxy Unpacked 2022 at which it is expected to introduce new Galaxy foldable smartphone models, a new Galaxy Watch, and Galaxy Buds. Shares of advertising technology platform company The Trade Desk (TTD) jumped after the company reported quarterly results that topped expectations and guided current quarter revenue above the consensus forecast. The RealReal (REAL) reported a smaller than expected bottom line loss for its June quarter as revenue for the period rose 47.2% YoY to %154.44 million, topping the $153.99 million consensus. However, the company issued downside guidance for both the current quarter and 2022. Revenue for the September quarter is now expected to be $145-$155 million vs. the $164.3 million consensus; for the full year of 2022, revenue is forecasted to be $615-$635 million vs. the $653.7 million consensus. Shares of Coinbase Global (COIN) moved lower after it reported June quarter results that missed top and bottom line expectations. Revenue for the quarter fell 63.7% YoY as Total trading volume fell 53.0% YoY and 29.8% sequentially to $217 billion. Monthly Transacting Users (MTUs) grew 2.3% YoY but fell 2.2% sequentially to 9.0 million. For the current quarter, Coinbase sees the number of MTUs trending lower sequentially and total trading volume to be lower compared to the June quarter. Shares of Sweetgreen (SG) tumbled in aftermarket trading last night after the company missed quarterly revenue expectations, lowered its 2022 forecast, announced it will lay off 5% of its workforce, and downsize to smaller offices. ChipMOS TECHNOLOGIES (IMOS) reported its July revenue was $65.1 million, a decrease of 19.4% YoY and down 7.7% MoM. Taiwan Semiconductor (TSM) reported its July revenue increased 49.9% YoY to NT$186.76 billion, which equates to a 6.2% MoM improvement. Electric vehicle subscription startup Autonomy placed a $1.2 billion order for 23K electric vehicles with 17 global automakers, including BMW (BMWYY), Canoo (GOEV), Fisker (FSR), Ford (F), General Motors (GM), Hyundai (HYMTF), Lucid Group (LCID), Mercedes-Benz (DDAIF), Polestar (PSNY), Rivian (RIVN), Stellantis (STLA), Subaru (FUJHY), Tesla (TSLA), Toyota Motor (TM), VinFast, Volvo Car (VLVOF) and Volkswagen (VLKAF). IPOs As of now, no IPOs are slated to be priced this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page. After Today’s Market Close Bumble (BMBL), CACI International (CACI), Coherent (COHR), Dutch Bros. (BROS), Red Robin Gourmet (RRGB), and Walt Disney (DIS) are expected to report their quarterly results after equities stop trading today. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar. On the Horizon Thursday, August 11 Germany: Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August US: Weekly Initial & Continuing Jobless Claims US: Producer Price Index – July US: Weekly EIA Natural Gas Inventories Friday, August 12 Japan: Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August China: China Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August Eurozone: Industrial Production - June US: Import/Export Prices – July US: University of Michigan Consumer Sentiment Index (Preliminary) – August Thought for the Day “The release date is just one day, but the record is forever.” ~ Bruce Springsteen Disclosures Tufin Software (TUFN), CyberArk (CYBR) are constituents of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Canoo (GOEV), Fisker (FSR), Lucid Group (LCID), Rivian (RIVN), Tesla (TSLA), Vita Coco (COCO) are constituents of the Tematica BITA Cleaner Living Index Canoo (GOEV), Fisker (FSR), Lucid Group (LCID), Rivian (RIVN), Tesla (TSLA), Vita Coco (COCO) are constituents of the Tematica BITA Cleaner Living Sustainability Screened Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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