Bristol-Myers Squibb Co (NYSE:BMY) Initiated with a Sell Rating

Stock Traders Daily has initiated coverage of Bristol-Myers Squibb Co (NYSE:BMY) with a sell rating.  Our rating is based on valuation that relates directly to earnings growth and our assessment suggests that the multiple currently being paid on shares of Bristol Myers far exceeds its growth rate making it expensive accordingly.

Furthermore, our macro economic analysis, The Investment Rate, tells us that the economy and the stock market are likely to come under severe pressure as new demand for equities in the United States retraces back to its natural level, something that is reasonable now that stimulus is over and that institutional margin debt levels are already at excessive highs.

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With a reversion back to natural demand levels multiple contractions are likely in the stock market and those stocks that look rich will likely be most vulnerable to a decline.

With a high current PE multiple and a low current growth rate, and with expectations for that to continue for at least the next year, we believe investors in Bristol Myers should sell.

Technical Summary

Term →Near Mid Long
Bias Neutral Neutral Neutral
P1 61.88 57.20 56.39
P2 62.61 62.44 64.06
P3 63.21 67.28 71.09

Long Term Trading Plans for BMY

March 29, 2016, 10:30 am ET

The technical Summary and associated Trading Plans for BMY listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for BMY. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

BMY - (Long) Support Plan

Buy over 56.39 target 64.06 stop loss @ 56.13.
The technical summary data tells us to buy BMY near 56.39 with an upside target of 64.06. This data also tells us to set a stop loss @ 56.13 to protect against excessive loss in case the stock begins to move against the trade. 56.39 is the first level of support below 62.77 , and by rule, any test of support is a buy signal. In this case, support 56.39 would be being tested, so a buy signal would exist.

BMY - (Short) Resistance Plan

Short under 64.06 target 56.39 stop loss @ 64.32.
The technical summary data is suggesting a short of BMY as it gets near 64.06 with a downside target of 56.39. We should have a stop loss in place at 64.32 though. 64.06 is the first level of resistance above 62.77, and by rule, any test of resistance is a short signal. In this case, if resistance 64.06 is being tested, so a short signal would exist.


BMY Long Term Analysis


BMY EPS Analysis

BMY Dividend Chart

BMY Revenue chart

BMY Growth rate - Quarterly

BMY Growth rate - Yearly

BMY PE chart

BMY PEG chart

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