BMY - Bristol-Myers Squibb: Could This Be A Value Trap? (Technical Analysis)

2024-06-11 16:05:14 ET

Summary

• Bristol-Myers Squibb is showing signs of potentially being a value trap.
• The stock price has fallen more than the underlying value of the company, but a price to free cash flow ratio of under 7x seems pessimistic.
• Technical support needs to establish itself before a bullish stance can be taken, but the dividend remains well covered and the balance sheet shows no immediate distress.

By Levi at Elliott Wave Trader, Produced with Avi Gilburt

I would imagine that in our time as investors, the majority, if not all, have been caught at least once. It’s that one company that just becomes even more of a bargain. The valuations are apparently so compelling that we may even double down on a losing stance, assured of our position and sleeping under the blanket of a seemingly warm dividend. Yet, the price continues to flounder and that blanket which used to provide so much comfort simply does not cover what it did before....

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