Bristol-Myers Squibb
Pharmaceutical giant Bristol-Myers Squibb Co. (NYSE: BMY) has added nearly 25% to its share price over the past 12 months. Shares rose steadily between late November, when they posted their 52-week low, and late June, when they posted their 52-week high. Since then, shares have dropped more than 8%. The company’s dividend yield makes it an attractive choice for a steady payer in a portfolio. Its strong brand sales are expected to remain solid, allowing for even better shareholder returns.
Of 22 analysts covering the drugmaker, 10 have a Buy or Strong Buy rating and another 11 rate the shares a Hold. At a share price of around $72.20, the implied upside at a median price target of $82.00 is about 13.9%. At the high price target of $90.00, the upside potential is about 25%.
For the company’s fiscal third quarter, analysts expect revenue of $11.18 billion, a decrease of 5.9% sequentially and a drop of about 3.8% year over year. Adjusted EPS are tabbed to come in at $1.83, down by 5% sequentially and 8.5% lower year over year. For the full 2022 fiscal year, the current revenue estimate is $46.03 billion, down about 0.8%, and the EPS estimate is $7.52, up just 0.2%.
Bristol-Myers stock trades at about 9.6 times expected 2022 EPS, 9.1 times estimated 2023 earnings of $7.94 and 8.8 times estimated 2024 earnings of $8.22 per share. The stock’s 52-week range is $53.22 to $80.59. The company pays an annual dividend of $2.16 (yield of 2.99%). Total shareholder return for the past year was just over 30%.
Kraft Heinz
Shares of Kraft Heinz Co. (NASDAQ: KHC) have dipped by around 1% over the past 12 months but have added more than 8% since the beginning of the fourth quarter, while the consumer staples sector has dropped by about 3.8% in the past month. Kraft Heinz has a solid dividend yield and a payout ratio of more than 100%. That is a big part of the reason Warren Buffett continues to hold the stock, even though it trades for just over half its value after the merger was completed in 2015.
Analysts in general are not so sanguine. Of 20 brokerages covering the stock, 11 have a Hold rating and wight have a Buy or Strong Buy rating. At a share price of around $36.05, the upside potential based on a median price target of $42.00 is 16.7%. At the high price target of $51.00, the upside potential is 41.7%.
Kraft Heinz is expected to post third-quarter revenue of $6.28 billion, down 4.1% sequentially and by 0.6% year over year. Adjusted EPS are forecast at $0.56, down 20% sequentially and by 13.8% year over year. For the full 2022 fiscal year, analysts are looking for EPS of $2.66, down 9.4% year over year, on revenue of $26.01 billion, down by 0.1%.
The stock trades at about 13.6 times expected 2022 EPS, 13.2 times estimated 2023 earnings of $2.74 and 12.6 times estimated 2024 earnings of $2.86 per share. The stock’s 52-week range is $32.73 to $44.87. Kraft Heinz pays an annual dividend of $1.60 (yield of 4.54%). Total shareholder return for the past 12 months was 3.4%.
Originally posted at 24/7 Wall St.
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