By Peet Serfontein & Khumbulani Kunene
Bristol Myers Squibb is a global research and development biopharmaceutical company that develops, licenses, manufactures, markets, and sells pharmaceutical and nutritional products.
The company focuses on products and therapies that address cancer, heart disease, HIV, diabetes, rheumatoid arthritis, hepatitis, organ transplant rejection, and psychiatric disorders. Some notable products include Eliquis for stroke prevention, cancer treatment drug Opdivo, and Orencia, which is used for reducing signs and symptoms in certain paediatric patients with active polyarticular juvenile idiopathic arthritis.
Technically, the appearance of a buy signal according to the Bollinger Bands presents a promising investment opportunity (see the insert on the main chart). The price has swung within the upper and lower Bollinger Bands and the most recent buy signal emerged after a period of consolidation near the lower Bollinger Band, pointing to reduced downward pressure as buyers appear to re-enter the market.
The price appears to be in the Accumulation phase of the Wyckoff Price Cycle. In this phase, volatility typically narrows amid subsiding selling pressure and the price tends to form a base as weak holders exit the market and stronger participants begin to take control.
The start of upside price momentum per the Moving Average Convergence Divergence (MACD) histogram, as well as the sideways trajectory of the on-balance volume (OBV) indicator, supports our bullish view.
| Share Information | |
|---|---|
| Share Code | BMY US |
| Industry | Pharmaceuticals, Biotechnology |
| Market Capital (USD) | 99 billion |
| One Year Total Return | 4.04% |
| Return Year-to-Date | -10.90% |
| Current Price (USD) | 48.66 |
| 52 Week High (USD) | 63.33 |
| 52 Week Low (USD) | 42.96 |
| Financial Year End | December |
| The price remains below its 200-day simple moving average (SMA). | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 1.15 | 6.52 | 6.02 | 5.81 |
| Growth (%) | 467.13 | -7.76 | -3.41 | |
| Dividend Per Share (USD) | 2.42 | 2.49 | 2.55 | 2.64 |
| Growth (%) | 2.81 | 2.29 | 3.54 | |
| Forward PE (times) | 7.85 | 8.27 | 8.37 | |
| Forward Dividend Yield (%) | 5.11 | 5.23 | 5.42 | |
| Strong earnings growth is expected near term, with some pressure expected over the medium term. We regard the 12-month forward dividend yield of over 5% as attractive. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | ABBV - Time Exit (Close the position) |
ETN - Buy (Continue to hold) |
MCD - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 185.72 | 334.86 | 299.17 |
| Current Price | 206.19 | 349.00 | 310.93 |
| Movement | +11.0% | +4.2% | +3.9% |
| Comment | The trade reached our time exit date and we closed the position. |
A price that seems to be developing wave b of the Elliott Wave price theory remains of interest. Remains above its 200-day SMA. Fading upside price momentum is a concern.
Our profit target is $395.00 with a trailing stop-loss at $325.00. |
A well-defined inclining channel pattern remains of interest. Crossed above its 200-day simple moving average. The start of upside price momentum is supportive.
Our profit target is $331.00 with a trailing stop-loss at $298.00. |
| Time to exit | 28 April 2026 | 1 October 2025 |
| Share Name and Position | SKY - Buy (Continue to hold) |
MET - Buy (Continue to hold) |
ADP - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 380.86 | 79.32 | 308.64 |
| Current Price | 389.94 | 78.22 | 305.72 |
| Movement | +2.4% | -0.8% | -0.9% |
| Comment | Strong seasonal strength in the price remains of interest. Crossed above its 200-day SMA. Downside price momentum has halted and is supportive to the trade strategy. |
A developing rising wedge pattern remains of interest. Remains below its 200-day simple moving average. Muted downside price momentum is supportive.
Our profit target is $89.00 with a trailing stop-loss at $74.00. |
A developing rising wedge pattern remains of interest. Testing its 200-day simple moving average. Downside price momentum has halted which is supportive.
Our profit target is $336.00 with a trailing stop-loss at $298.00. |
| Time to exit | 28 October 2025 | 29 August 2025 | 30 September 2025 |
| Share Name and Position | COST - Buy (Continue to hold) |
|---|---|
| Entry | 991.25 |
| Current Price | 980.85 |
| Movement | -1.0% |
| Comment |
A developing symmetrical triangle pattern in an uptrend remains of interest. Testing its 200-day simple moving average. Upside price momentum is supportive.
Our profit target is $1 100.00 with a trailing stop-loss at $957.00. |
| Time to exit | 3 November 2025 |
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