Patient Investors Will Stick With Very Cheap Bristol-Myers Squibb Stock

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Bristol-Myers Squibb (NYSE:BMY) is incredibly cheap. For example, based on earnings estimates, BMY stock trades at just 7.8 times next year’s earnings.

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In addition, it has an attractive dividend yield of 3.11%, which is likely to increase soon. I estimate the stock is worth at least $84.47, or 46% more than its present price.

And that is after discounting its real worth significantly, to add in a margin of safety. The target price is primarily based on its expected earnings and dividends, its history, and comparisons with its peers.

BMY Stock Earnings and Dividend Expectations

Last quarter, the company blew away analysts’ earnings forecasts. It is likely to do so again this quarter. For example, Bristol Myers was supposed to hit $1.48 earnings per share in the second quarter, according to analysts’ average estimates.

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