We recently published a list of Was Jim Cramer Right About These 9 Stocks? In this article, we are going to take a look at where Bristol-Myers Squibb Co. (NYSE:BMY) stands against other stocks that Jim Cramer discusses.
In an older segment, a long-time listener asked about Bristol-Myers Squibb Co. (NYSE:BMY) given its dividend and drug pipeline. Cramer wasn’t optimistic and said he’d prefer Pfizer for yield-focused investors. He stated:
“I think that you’re going to be paid to wait for things… but it’s going to be a long wait. If I want to be paid to wait, I’d rather be in Pfizer than I would be in Bristol-Myers.”
Cramer picked the wrong name, as BMY rose +15.13% while Pfizer lagged.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company focused on developing drugs for cancer, cardiovascular disease, and immunological disorders.
Although Cramer holds the stock in his charitable trust, he’s still waiting for it to bottom before buying back into it. Here are his comments from May 14:
“Let’s get started with the stocks that sold off hard today, because I think it’s really important, because you know most, if not all, of these companies. Why don’t we start with Bristol Myers, which we own for the Charitable Trust? Now here’s a drug company with a decent oncology franchise that happens to be facing what’s known as a huge patent cliff, alright… meaning it’s about to have some highly lucrative drugs lose their patent protection, therefore not make them much money at all. We own it in part because of the yield. They’re paying you to wait for new drugs that turn things around. The chief one is COBENFY. It’s a potentially revolutionary drug that treats some tough neurological problems, including schizophrenia. Now we sold some of this stock when it had this ridiculous spike right here… some bizarre rotation into safety, but now Bristol’s in the mid-40s. Now, we haven’t bought back all of the stock that we sold. We’re waiting for it to bottom because its most recent studies using COBENFY, it’s one study, it came up snake eyes. Management has said over and over again that it can pay the dividend, which gives you a 5.6% yield. Why not buy more? Honestly, because I think it can go lower still without evidence that COBENFY is doing better.”
A pharmacy shelves stocked with pharmaceutical drugs awaiting distribution.
Overall, BMY ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of BMY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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