Is Bristol-Myers Squibb (BMY) a Smart Long-term Buy?

Generation PMCA recently released its Q3 2020 Investor Letter. The fund is managed by co-founders Randall Abramson and Herb Abramson. The investment firm serves its clients through two distinct areas: Portfolio Management and Capital Advisory services. You should check out Generation PMCA’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Generation PMCA highlighted a few stocks and Bristol Myers Squibb Co (NYSE:BMY) is one of them. Bristol Myers Squibb Co (NYSE:BMY) is a pharmaceutical company. Year-to-date, Bristol Myers Squibb Co (NYSE:BMY) stock lost 4% and on November 20th it had a closing price of $61.61. Here is what Generation PMCA said:

“Bristol Myers Squibb is a leading biopharmaceutical company focused on oncology, autoimmune diseases, cardiovascular diseases, and fibrosis. The market has been overly concerned with the loss of exclusivity of Revlimid in 2 years and Eliquis in 5 years. We believe the company has the ability to offset these patent expirations via M&A (it recently announced the acquisition of MyoKardia) and its compelling pipeline, including TYK-2, Opvido, Ozanimod, and Zeposia. To account for the risks associated with drug development and M&A, our valuation models assume zero growth after the next 5 years. The company has a 2.9% dividend yield and our FMV is $75.”

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Earlier this month, we published an article revealing that Bristol Myers Squibb Co (NYSE:BMY) is one of the top 5 leading healthcare surging on pent-up demand.

In Q2 2020, the number of bullish hedge fund positions on Bristol Myers Squibb Co (NYSE:BMY) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in BMY’s growth potential. Our calculations showed that Bristol Myers Squibb Co (NYSE:BMY) is ranked #10 among the 30 most popular stocks among hedge funds.

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Video: Top 5 Stocks Among Hedge Funds

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