Buy Bristol-Myers Squibb On The Pullback

| About: Bristol-Myers Squibb (BMY)

A right time to buy a good stock is during a market pullback, which is right now. The shares of Bristol-Myers Squibb (NYSE:BMY) have pulled back a little so if you've been waiting now is a good time to step in.

During the past 6 months BMY has increase 22.50% while the market as measured by the Value Line Index rose about 12.50%. You can see by the chart provided by Barchart that both had a little pull back lately.

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Factors you should consider:

Fundamental factors:

  • Market Cap - $66.92 billion
  • P/E 20.81
  • Dividend yield 3.43%
  • Analysts project revenue may shrink by 5.80% this year but increase by 7.80% next year
  • Earnings are estimated to decrease by 7.50% this year buy increase 18.50% next year and continue to grow annually by 7.20% for the next 5 years
  • Financial Strength A++

Investor interest:

  • 16 Wall Street brokerage firms have assigned 21 analysts to run the numbers on this stock
  • They have released 5 strong buy, 2 buy, 13 hold and 1 under perform recommendation
  • Total Return consensus is 9 - 11% annually for the next 5 years
  • On Motley Fool 1,791 individual investors gave the stock a 93.7% vote of confidence to beat the market
  • Short sellers have begin trimming their positions from around 40.5 million shares at the end of the year to 38.8 million shares recently
  • TheStreet rates this an A- stock

Technical factors provided by Barchart:

  • 56% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 14 new highs and up 8.37% in the last month
  • Relative Strength Index 63.27
  • Barchart computes a technical support level at 39.76
  • Recently traded at 40.55 with a 50 day moving average of 38.04

Peer comparisons:

During the past year Bristol-Myers Squibb rose 25%, Pfizer (NYSE:PFE) up 32%, Novartis (NYSE:NVS) up 31% and Merck (NYSE:MRK) up 17%:

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Conclusion: Right now both the market and BMY are in a slight pull back. Investors getting in at this point should watch the moving averages and 14 day turtle channel to gauge weakness in the stock's momentum:

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Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in BMY, PFE, NVS, MRK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.