Bristol Myers Squibb stock (NYSE: BMY) currently trades at $59 per share, 6% below the level seen in March 2021, and it has room for growth, in our view. BMY stock was trading at around $77 in early June 2022, just before the Fed started increasing rates, and is now 23% above that level, compared to 14% gains for the S&P 500 during this period. The decline in the stock over recent months can partly be attributed to declining sales of its top selling drug – Revlimid – amid biosimilar competition.
Interestingly, BMY stock has had a Sharpe Ratio of 0.1 since early 2017, lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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