We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Bristol-Myers Squibb Company (NYSE:BMY) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A pharmacy shelves stocked with pharmaceutical drugs awaiting distribution.
Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 61
Cramer talked about Bristol-Myers Squibb Company (NYSE:BMY) in a post-cutting landscape and in relation to the employment report coming out on Friday. Here’s what he said:
“We get two drug stocks on Thursday too. We get Merck and Bristol Myers. This group has been castigated as the wrong place to be when the Fed’s cutting rates, the hedge fund playbook says that. I think both stocks are too low but I also know that if we get a weak employment on Friday, Merck and Bristol Myers will be two stocks that you should not have bought. So put that in a little retrospect.”
Bristol-Myers (NYSE:BMY) stands as a prominent company in the biopharmaceutical sector, focused on addressing a range of diseases across various therapeutic areas, including hematology, oncology, cardiovascular health, immunology, fibrotic diseases, and neuroscience. As the company looks toward the future, it faces challenges stemming from the impending loss of patent exclusivity for two of its key growth drivers: Eliquis, an anticoagulant, and Opdivo, a cancer treatment.
Both products are set to lose exclusivity by the end of the decade, prompting the company to devise a strategy that includes the development of a subcutaneous formulation of Opdivo. On October 25, Citi analyst Geoff Meacham downgraded Bristol-Myers (NYSE:BMY) to Neutral from Buy with a price target of $55, down from $75.
The downgrade came because of the anticipated growth headwinds associated with the loss of exclusivity for Eliquis and Opdivo. The company is expected to undergo a transitional period from 2025 to 2027, which could introduce volatility into its performance. Despite these challenges, Citi maintains a positive outlook on its growth portfolio, viewing the company more as a narrative to watch in 2027 and beyond.
Overall BMY ranks 16th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of BMY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BMY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
