04-29-2021, 02:05 PM
(04-29-2021, 01:22 PM)divmenow Wrote: As cheap as BMY looks I just can’t see buying if here. Look at a 10 year chart. It has lagged the market and done nothing. No new highs in 10 years lol. MRK just as bad! I would rather just own ABBV and put it all in that ? Better dividend, better growth.
BMY is a fun lesson in valuation and the difference between business performance and stock performance.
BMY has grown EPS at a 19.6% rate over the last five years, yet has produced total returns of just 1.6% annualized.
During that time it went from a PE multiple of 34 to a current PE of under 10.
At that multiple and a 3% yield, the market is pricing in zero growth going forward.