Analyst Says Bristol-Myers Squibb (BMY) Among the Best ‘Deep Value’ Stocks to Buy

We recently published Top 10 Trending Stocks Everyone’s Watching in Q4. Bristol-Myers Squibb Company (NYSE:BMY) is one of the trending stocks everyone’s watching.

Morningstar’s Dave Sekera said in a recent program on Schwab Network that BMY is one of the top deep value stocks today. The analyst mentioned the stock’s dividend yield and valuation:

“Well, one of the kind of biggest deep value names today is going to be in healthcare, and that’s Bristol-Myers Squibb Co (NYSE:BMY). So, it’s a five-star rated stock. That’s our highest rating, trading at a 33% discount to fair value. Nice big fat dividend yield at 5.6%. And the name trades at under eight times our earnings estimates this year. Now, they do have some difficulties. They do have a number of patents that will be coming off expiration in the next couple years. We’ve already incorporated that into our modeling. But when we look at their pipeline, we don’t think the market is giving them really any credit for their existing pipeline. Any of those were to hit in the next couple years or if they get like some label expansion on some of their existing drugs, we think that there’s a lot of value in that name.”

PGIM Jennison Health Sciences Fund stated the following regarding Bristol-Myers Squibb Company (NYSE:BMY) in its second quarter 2025 investor letter:

“Bristol-Myers Squibb Company (NYSE:BMY) is a global pharmaceutical company focused on discovering, developing, and marketing drugs across multiple therapeutic areas, including Cardiovascular Disease, Oncology, Hematology, and Immunology. BMY currently has three key mega-blockbuster franchises that will lose patent expiry over the next decade: Revlimid which started facing limited generic competition in 2022 and will face full generic entry in 2026; Eliquis, which was part of the first round of Inflation Reduction Act (IRA) negotiations last year, with price cuts effective on Jan 1, 2026, and will face generic entry in 2028/29; and Opdivo, which faces biosimilar competition starting in 2029, although BMY aims to preserve part of the franchise with the recent launch of a subcutaneous formulation that eliminates the need for an Intravenous (IV) infusion. We initiated a position in BMY last spring as the stock seemed deeply undervalued and we had above market expectations for their neuropsychiatric Cobenfy, the main asset acquired in the Karuna deal. We took profits earlier in 2025 as the stock had rallied and closed much of the valuation disconnect; we subsequently sold more well above current levels as we were skeptical about recent readouts due to concerns over trial design, bringing us underweight the name. Our skepticism was borne out with a pair of negative updates on Camzyos and Cobenfy, and coupled with a slightly disappointing quarter, these updates have caused the stock to decline. We exited the last of our position following 1Q earnings.”

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Disclosure: None. This article is originally published at Insider Monkey.