Over the past six months, Bristol-Myers Squibb has been a great trade, beating the S&P 500 by 22.8%. Its stock price has climbed to $61.33, representing a healthy 30.1% increase. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Is there a buying opportunity in Bristol-Myers Squibb, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.

Why Is Bristol-Myers Squibb Not Exciting?

We’re happy investors have made money, but we're sitting this one out for now. Here are three reasons we avoid BMY and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, Bristol-Myers Squibb’s sales grew at a tepid 2.6% compounded annual growth rate over the last five years. This was below our standards.

2. Revenue Projections Show Stormy Skies Ahead

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Bristol-Myers Squibb’s revenue to drop by 6.3%, a decrease from its 2.6% annualized growth for the past five years. This projection doesn't excite us and implies its products and services will see some demand headwinds.

3. Shrinking Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

Analyzing the trend in its profitability, Bristol-Myers Squibb’s adjusted operating margin decreased by 10.3 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its adjusted operating margin for the trailing 12 months was 30.4%.

Final Judgment

Bristol-Myers Squibb isn’t a terrible business, but it isn’t one of our picks. With its shares topping the market in recent months, the stock trades at 9.7× forward P/E (or $61.33 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. Let us point you toward the most entrenched endpoint security platform on the market.

Stocks We Would Buy Instead of Bristol-Myers Squibb

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The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.