Trade-Ideas: Bristol-Myers Squibb Company (BMY) Is Today's Unusual Social Activity Stock

Trade-Ideas LLC identified Bristol-Myers Squibb Company ( BMY) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Bristol-Myers Squibb Company as such a stock due to the following factors:

  • BMY has 11x the normal benchmarked social activity for this time of the day compared to its average of 6.68 mentions/day.
  • BMY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $500.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on BMY:

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. The stock currently has a dividend yield of 2.4%. BMY has a PE ratio of 59. Currently there are 7 analysts that rate Bristol-Myers Squibb Company a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Bristol-Myers Squibb Company has been 5.9 million shares per day over the past 30 days. Bristol-Myers Squibb has a market cap of $104.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.04 and a short float of 1.5% with 2.71 days to cover. Shares are down 8.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bristol-Myers Squibb Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • BMY's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.
  • BRISTOL-MYERS SQUIBB CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BRISTOL-MYERS SQUIBB CO reported lower earnings of $1.20 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $1.20).
  • The gross profit margin for BRISTOL-MYERS SQUIBB CO is currently very high, coming in at 77.81%. Regardless of BMY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BMY's net profit margin of 17.35% is significantly lower than the industry average.
  • Compared to where it was trading a year ago, BMY's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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