Bristol-Myers Squibb Co (NYSE:BMY) — Of all the major publically traded drug companies, BMY stock is one of the most successful, with shares almost tripling over the past five years.
Zacks Equity Research predicts this leading global drug developer and manufacturer will beat analysts’ Q2 earnings projections when the company reports, scheduled for before the opening bell on Thursday. Zacks notes Bristol-Myers Squibb has beat expectations in each of the past four quarters by an average of 28%, and the Zacks consensus estimate is for earnings of 67 cents per share, up nearly 27% from 53 cents a year ago on 11.4% revenue growth.
Its analysts, which rate BMY stock a “Strong Buy,” also point to strong performance in key products, including the high-profile immuno-oncology drug, Opdivo, which is the most prescribed drug for new lung cancer patients.
Turning to the chart, we see that BMY stock began this year with a decline that took shares below $60 in early February. Moving off this bottom, BMY stock flashed a golden cross, a long-term buy signal in which the 50-day moving average crosses up through the 200-day, in mid-April.
By late April, shares began forming a consolidation pattern with support at $70 and resistance at $74. That consolidation was broken this month with a run to a new high over $77.
A recent consolidation with support at $74 is now in effect. A buy signal from my proprietary internal indicator, the Collins-Bollinger Reversal (CBR), was triggered on Friday and supports my view that the stock is headed to another new high.
Traders should buy BMY stock on a pullback to initial support at $74 with a target of $84 for a potential return of more than 13%. The company also pays a quarterly dividend of 38 cents a share for a forward annual yield of 2%.
