Https Finance Yahoo Com News Bristol Myers Squibb Co Bmy 131223178 Html
Bristol Myers Squibb Stock: A Compelling Buy or a Better Deal Than the S&P 500 ETF?
Bristol Myers Squibb Sheds 2,200 Employees to Slash Costs
Shares of Bristol Myers Squibb (NYSE: BMY) fell sharply on Tuesday after the pharmaceutical giant announced plans to shed 2,200 employees as part of a cost-cutting initiative. The company's stock was down 83 cents, or 1.3%, to $62.17 as of 11:19 am ET.
Reason for Share Drop
The sell-off in Bristol Myers Squibb's shares came after the company announced that it would eliminate 2,200 jobs this year as part of a plan to reduce its cost base by $1.5 billion by the end of 2025. The company said that the job cuts would be made across all of its operations, including research and development, manufacturing, and sales and marketing.
Valuation and Dividend Yield
Despite the recent sell-off, Bristol Myers Squibb's stock remains attractively valued. The company trades at a forward price-to-earnings ratio of 13.7, which is below the average for the pharmaceutical industry. The company also has a healthy dividend yield of 2.7%, which is well above the average for the S&P 500 index.
Comparison to Vanguard SP 500 ETF
While Bristol Myers Squibb's stock may be attractively valued, it is important to compare it to other investment options before making a decision. The Vanguard SP 500 ETF (NYSE: VOO) is a low-cost index fund that tracks the performance of the S&P 500 index. The ETF has a low expense ratio of 0.03%, and it provides investors with exposure to a wide range of companies in the U.S. market.
Conclusion
Bristol Myers Squibb's stock is attractively valued and offers a healthy dividend yield. While the company is facing some challenges, its cost-cutting initiatives could help to improve its margins and boost its share price in the long run. However, investors should carefully consider all of their investment options before making a decision, including the Vanguard SP 500 ETF, which offers diversification and low costs.
Https Www Nbcnewyork Com News National International Bristol Myers Squibb Beats On Revenue Launches 1 5 Billion Cost Cuts As It Posts Quarterly Loss 5352998
Comments