The Single Smartest Reason to Buy Bristol Myers Squibb Stock Right Now

Forget the noise—this pharma giant's pipeline holds one explosive catalyst Wall Street keeps underestimating.

The Blockbuster in Waiting

Bristol Myers Squibb isn't just resting on its laurels. While analysts obsess over quarterly earnings, the company's R&D engine is quietly assembling a portfolio that could redefine its valuation. We're talking late-stage therapies targeting massive, underserved markets—the kind that generate headlines and send shares soaring.

Beyond the Patent Cliff

Sure, every legacy pharma faces the patent expiration boogeyman. But Bristol Myers is executing a textbook pivot, using cash flow from established winners to fund a new generation of treatments. It's a brutal, high-stakes chess game, and they're several moves ahead.

The Cynical Take

Let's be real—if this were a crypto project promising 'disruption,' it would have a 10x valuation already. Instead, we get a proven company with real revenue, trading like it's going out of style. Sometimes the market's obsession with the 'next big thing' blinds it to the obvious win right in front of its face.

Bottom line: When this pipeline ignites, the rally will be brutal for anyone caught on the sidelines.

Image source: Getty Images.

Bristol Myers Squibb stock offers a relatively big yield because it recently lost exclusivity for Revlimid, a cancer therapy with sales that peaked at $12.8 billion in 2021. In a few more years, it will also lose exclusivity for Eliquis, an oral blood thinner currently responsible for about 31% of total revenue.

With Revlimid fading fast and Eliquis on the ropes, Bristol Myers Squibb probably seems like a stock to avoid. Despite the headwinds, there's a great reason to buy it right now. Its lineup of recently launched treatments is poised to offset losses from Revlimid and eventually Eliquis.

Bristol Myers Squibb's growth portfolio contains at least seven drugs that grew sales by a double-digit percentage in the second quarter. Second-quarter sales of Breyanzi, a cell-based cancer treatment, more than doubled.

In the quarters ahead, investors can look forward to surging sales of Cobenfy. This new schizophrenia treatment earned approval from the Food and Drug Administration last September, and sales are expected to reach $2.6 billion by 2030.

This year, the big pharma company expects earnings to land in a range between $6.35 and $6.65 per share. That's heaps more than it needs to meet a dividend commitment currently set at an annualized $2.48 per share. With a strong lineup of new products to offset losses due to upcoming patent expirations, its high-yield dividend could keep growing for at least another decade.