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Lyft has rolled out its AI-based Earnings Assistant tool over the past year. Bloomberg/Getty Images Ride-hailing drivers can spend months or years learning the best ways to make money. Now, there's artificial intelligence for that.

Lyft has been rolling out over the past year Earnings Assistant, a AI tool that gives drivers tips on where and when to drive. It shows how the company hopes to use AI to help drivers earn more in an industry where they're paid per trip.

The tool has two features. One, called plan guidance, gives drivers advice on where to go to increase their chances of claiming rides, especially if they're planning to work on the app for a limited time. The option, available to drivers in the US, is meant to help new drivers find productive areas and times to work, a Lyft senior staff software engineer, Xiaoyi Duan, told Business Insider.

Another feature, called real-time guidance, pinpoints where Lyft customers need rides. Lyft is still testing this feature, which is live in most cities.

Lyft's Earnings Assistant feature shows drivers where they can go to claim rides.  Lyft "Drivers want to earn more, and they see various signals in the app, but those signals are not tailored to drivers' personalized needs," Duan said.

Lyft is using AI to synthesize the information — such as where ride requests are coming in or when they tend to spike in certain areas — and make personalized recommendations. That could mean pointing a driver toward a stadium when a concert is about to end or suggesting they pick up their last ride of the day at an airport because it's the busiest time of day for arrivals.

Lyft and rival Uber each have millions of drivers globally, many of whom accept rides on both services, comparing the pay and features. Uber is beta-testing a similar AI feature to help drivers earn more on its app.

Ride-hailing drivers often learn how to maximize earnings on apps like Lyft and Uber as they gain experience. With millions of other people on the apps, though, claiming trips and making money can be competitive. And with no clear bosses or colleagues, figuring out how to make money on the apps is challenging.

Lyft created Earnings Assistant within the past two years, the company said. The company showed early versions of the tool to drivers at events in Dallas, Las Vegas, and Miami last fall. It also tested Earnings Assistant with drivers who offered rides near Santa Clara, California, for February's Super Bowl.

The testing showed that experienced drivers often know to look for patterns that could help them earn more money, so they want more tips about where to go in the moment, Yuko Yamazaki, vice president and head of driver at Lyft, told Business Insider.

Many new Lyft drivers, meanwhile, are initially overwhelmed by the options when they start using the app, Yamazaki told Business Insider. Yamazaki said the app's plan guidance focuses on these drivers and offers suggestions on where to work, such as, "Here is what the next two hours could look like."

"The real-time signals are becoming more of an interest for drivers as they become more mature on our platform," she said.

Duan said Lyft wants to expand the tool, which currently requires drivers to prompt it for suggestions. Future iterations could tell drivers they're near a busy event as they pass it, or indicate how the weather is affecting opportunities to make money, she said.

"We are not trying to build an AI product because we want to use AI," Duan said. "We're trying to find what are the actual driver needs. That's the fundamental thing."

Do you have a story to share about Lyft, Uber, or another ride-hailing service? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

Lyft AI ride-hailing More Artificial Intelligence

The national average for a gallon of regular gasoline hit $4.55 on May 7, 2026 -- up $1.40 from a year ago and at its highest level since the 2022 energy crisis, according to AAA. In California, drivers are paying $6.11 a gallon. 50% of Americans expect prices to keep climbing through 2027, according to a recent Ipsos poll.

Behavior is already shifting. That same survey found 44% of adults have cut back on driving, 34% have changed vacation plans, and where public transit exists, ridership is rising. There was also a 40% jump in carpooling platform rides from February to March alone.

Lyft (LYFT 1.24%) is the direct beneficiary of that shift -- and it's trading like the market hasn't noticed.

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Lyft just reported Q1 2026 gross bookings of $4.9 billion, up 19% year over year, with active riders at a record 28.3 million -- the sixth consecutive quarter of double-digit rider growth. Revenue came in at $1.7 billion, up 14%, and trailing-12-month free cash flow crossed $1.1 billion for the first time in company history. When gas is expensive, people abandon solo car trips. Lyft is where those trips go.

CEO David Risher called Q1 results the continuation of a "customer-obsessed comeback," and the metrics back that up. The platform is also deepening its moat through partnerships: nearly 27% of North American rides now tie to a partner arrangement -- an all-time high -- with programs through JPMorgan Chase, DoorDash, and United Airlines driving bookings that originate outside the Lyft app entirely.

Image source: Getty Images.

The part of Lyft that the market is pricing wrong Despite the momentum, Lyft trades near $14 -- roughly 31% below the Wall Street consensus price target of $19.43, and well off its 52-week high of $26. TD Cowen maintains a Buy rating, and the stock trades at a forward P/E about 13.5 -- cheap for a business generating record free cash flow with visible rider growth.

The deeper optionality is Flexdrive -- Lyft's fleet management arm, which operates 24 depots managing roughly 15,000 vehicles across North America. This fall, Lyft will open an 80,000-square-foot purpose-built facility in Nashville to manage Waymo's autonomous vehicle fleet. That is a physical depot already under construction, with a charged customer and a launch date. If robotaxis scale, Lyft earns fees without bearing vehicle costs -- a fundamentally different margin structure from today's driver-dependent model.

It's important to note that Lyft is nowhere close in size to Uber Technologies. Uber is massive. Lyft lacks global scale, and its EPS missed estimates in Q1. The economics of autonomous vehicle fleets remain unproven at scale. Any stall in the rider's growth trajectory would close the gap between the current price and fair value faster than in the bull case.

But the setup right now is clean: gas is expensive, people are driving less, Lyft's core metrics are at records, free cash flow is real, and the stock is below analyst targets. This is a solid long-term buy.

JPMorgan Chase is an advertising partner of Motley Fool Money. Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash, JPMorgan Chase, Lyft, and Uber Technologies. The Motley Fool has a disclosure policy.

Key Takeaways Uber Q1 2026 EPS of 72 cents beat 70 cents estimate; total gross bookings rose 25% to $53.7B.Uber sees Q2 gross bookings $56.25B-$57.75B, up 18-22% Y/Y on constant currency. Lyft Q1 EPS of 21 cents missed the 31-cents consensus; shares slid on the earnings miss. Uber Technologies (UBER - Free Report) , headquartered in San Francisco, CA, has pursued an aggressive global expansion strategy while broadening its business portfolio. While ride-sharing continues to be its core business, the company has established substantial additional revenue sources through Uber Eats, its food delivery platform, and Uber Freight, a logistics marketplace. This diversified approach reflects Uber’s ambition to evolve into a comprehensive transportation and delivery ecosystem rather than remain solely a ride-hailing company.

Lyft (LYFT - Free Report) , also based in San Francisco, has adopted a more concentrated strategy. The company operates primarily within the United States and remains heavily focused on ride-sharing, placing far less emphasis on diversification. This focused business model allows Lyft to channel resources toward strengthening the core services, although it also reduces exposure to higher-growth segments such as delivery services and international expansion.

Earlier this month, both companies announced their first-quarter 2026 results. Given their contrasting strategic approaches, it is worthwhile to assess which stock offers the more attractive investment opportunity following the latest quarterly earnings reports.

The Case for UBEROn May 6, Uber posted better-than-expected earnings per share for the first quarter of 2026. Moreover, management gave a bullish outlook for bookings, noting that demand remains strong despite geopolitical tensions in the Middle East.

Uber’s earnings per share of 72 cents beat the Zacks Consensus Estimate of 70 cents. The reported figure matched the higher end of the company's guided range of 65-72 cents per share.

Total revenues of $13.2 billion missed the Zacks Consensus Estimate of $13.3 billion. The top line jumped 14.4% year over year on a reported basis and 10% on a constant currency basis.

Despite the crisis in the Middle East, UBER’s Mobility business saw impressive demand, with segmental revenues increasing 5% year over year on a reported basis and 1% on a constant currency basis to $8.2 billion.

Gross bookings from the unit were highly impressive, aiding the first-quarter results. From the Mobility segment in the March quarter, gross bookings increased 20% year over year on a constant-currency basis to $26.4 billion.

Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the first quarter rose 23% year over year on a constant-currency basis to $26 billion. Total gross bookings jumped 25% to $53.7 billion, ahead of the Zacks Consensus Estimate of $52.9 billion.

Uber saw a 17% increase in its monthly active platform consumers to 199 million users in the March quarter. The platform recorded 3.64 billion trips, marking a 20% year-over-year rise, driven by both ride-hailing and delivery services.

The earnings beat by Uber in the March quarter meant that its impressive earnings surprise record continued. Uber has reported a positive earnings surprise in three of the past four quarters (and the metric was negative in the other quarter). The average beat is 89.6%.

More than the first-quarter numbers, it was the second-quarter gross bookings forecast that pleased investors. Shares of the ride-hailing giant have gained 3% so far post the earnings release.

Despite the ongoing tensions in the Middle East and the resultant fuel price spike, gross bookings are projected in the range of $56.25-$57.75 billion, highlighting growth of 18% to 22% year over year on a constant-currency basis. The outlook assumes a roughly 2 percentage-point currency tailwind to total reported year-over-year growth.

Adding to the bullishness, management expects June quarter earnings to grow in the 31-38% band year over year. As a result, second-quarter earnings per share are expected in the 78-82 cents band.

Despite the uptick, following the first-quarter earnings beat, Uber’s price performance is disappointing so far this year, lagging the Zacks Internet-Services industry. Uber’s shares have dropped primarily on concerns regarding competition in the robotaxi and autonomous driving space. 

The Case for LYFTOn May 7, Lyft released its first-quarter 2026 earnings report. Quarterly earnings per share of 21 cents missed the Zacks Consensus Estimate of 31 cents but increased 10.5% year over year. Revenues of $1.65 billion beat the Zacks Consensus Estimate by 1.8% and grew 13.8% year over year.

The miss by Lyft in the March quarter meant that its unimpressive earnings surprise record continued. Lyft has reported a negative earnings surprise in each of the past four quarters. The average miss is 53.3%.

In the March quarter, gross bookings increased 19% year over year to $4.9 billion. This was the 20th consecutive quarter where Lyft demonstrated double-digit year-on-year growth in the key metric, demonstrating the resilience and momentum of its customer-friendly strategy. Active Riders increased 17% year over year to 28.3 million.

For the second quarter of 2026, Lyft anticipates gross bookings to grow 18-21% year over year, reaching $5.3-$5.43 billion. The company expects adjusted EBITDA to be in the band of $160 million and $180 million. Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) for the June quarter is anticipated to be in the range of 3-3.3%.

The loss, however, reported in the quarter seems to have disappointed investors, resulting in the stock declining sharply since the first-quarter earnings release. In fact, Lyft’s shares have performed worse than Uber so far this year.

YTD Price Comparison

Image Source: Zacks Investment Research

Lyft More Attractive Than Uber on Valuation FrontLyft is trading at a forward sales multiple of 0.65X, comparing favorably to Uber’s 2.5X. LYFT has a Value Score of B, compared with UBER’s C.

Image Source: Zacks Investment Research

End NoteUber’s strong focus on strategic diversification and shareholder-friendly initiatives remains a key advantage. Supported by a solid market capitalization of $152.85 billion, the company appears well-equipped to withstand the current macroeconomic uncertainty. Uber’s diversification efforts — including acquisitions, global expansion and innovative service offerings — have been instrumental in mitigating risks and strengthening its competitive position.

It is true that Lyft, like Uber, continues to benefit from healthy gross bookings. However, Lyft’s weaker earnings surprise and relatively subdued stock performance compared with Uber place it at a disadvantage. Based on our analysis, Uber clearly stands out as the stronger contender in this comparison with Lyft. Therefore, it is reasonable to conclude that Uber is better positioned than Lyft following their respective first-quarter 2026 earnings releases.

Lyft currently carries a Zacks Rank #5 (Strong Sell) and Uber has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On May 22, 2026, Lyft Inc LYFT shares rose 3.1% today, currently priced at $13.90. The stock has seen a 52-week range between $12.46 and $25.54, reflecting significant volatility in the market.

GF Value™ verdict: Current price is $13.90, with a GF Value™ of $17.14, indicating an 18.9% undervaluation. GF Score™ of 77/100 suggests the stock is rated as above average. Notable signal: Insiders sold $0.8M worth of shares in the last 3 months, with no buying activity reported. Is LYFT Overvalued or Undervalued? Currently, Lyft Inc's shares are trading at $13.90, compared to the GF Value™ estimate of $17.14. This indicates that the stock is undervalued by approximately 18.9%, providing a margin of safety for potential investors. The GF Valuation label classifies LYFT as modestly undervalued, suggesting that there may be an opportunity for growth if market conditions improve.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation presents a potential opportunity, investors should be cautious considering the company's financial strength and recent insider selling activity, which may indicate some underlying concerns.

How Does LYFT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 2.0x 60.9x Forward P/E N/A 23.0x The current P/E (TTM) of 2.0x is significantly below its 5-year median P/E of 60.9x, indicating that the stock is trading well below its historical valuation metrics. This analysis aligns with the GF Value™ verdict, reinforcing the notion that LYFT is undervalued based on its historical performance.

What Does LYFT's GF Score™ Tell Us? Metric Rating GF Score™ 77/100 Financial Strength 5/10 Profitability 4/10 Growth 8/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 77/100 indicates that Lyft is rated above average, with strong growth and valuation ranks of 8/10. However, the financial strength and profitability ranks are relatively weaker at 5/10 and 4/10, respectively, suggesting that while the potential for growth is robust, the company's current financial health may present challenges.

What Are Insiders Doing with LYFT Stock? In the past three months, insiders have sold $0.8 million worth of LYFT shares, with no buying activity reported. This trend of selling may suggest that insiders lack confidence in the company's short-term prospects, which could be a point of concern for potential investors.

What This Means for Investors Based on the assessment of LYFT's current price in relation to its GF Value™, the stock is considered undervalued. However, investors should remain cautious due to insider selling and the company's moderate financial strength. It is essential to conduct thorough research before making any investment decisions.

For the complete analysis, visit the Lyft Inc LYFT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is LYFT's GF Score™?

LYFT's GF Score™ is 77/100, indicating that the stock is ranked above average based on key financial metrics.

Is LYFT overvalued or undervalued?

LYFT is currently undervalued, with a GF Value™ of $17.14 compared to its current price of $13.90, suggesting potential for growth.

What is LYFT's P/E ratio?

LYFT's P/E ratio is 2.0x, which is significantly lower than its 5-year median P/E of 60.9x, indicating that it is trading well below its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

These ride-sharing leaders are making moves amid massive changes in transportation driven by artificial intelligence (AI) and self-driving technology. Uber Technologies (UBER 1.25%) and Lyft (LYFT 1.24%) are posting strong growth for their services, but the head-to-head comparison of recent growth and revenue size may give investors a big clue as to which company is best positioned to win.

Uber Technologies: Recent Revenue TrendsUber Technologies operates a global technology network that connects consumers with independent providers for ridesharing, restaurant meal delivery, and freight transportation services.

The company announced a 21% year-over-year increase in revenue for the first quarter, along with new initiatives in robotaxis and expansion into hotel bookings. Uber has scaled its ridesharing platform into a profitable business, with operating profit reaching $1.9 billion in the quarter.

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Lyft: Steady GrowthLyft operates a multimodal transportation network that offers riders personalized, on-demand access to ridesharing, flexible car rentals, and shared bikes across the United States and Canada.

The company posted a 14% year-over-year increase in revenue in the first quarter. It recently announced an acquisition of Gett U.K., helping Lyft expand its operations into higher-value segments of the London market. It’s not as profitable as Uber, reporting an operating loss of $5.3 million last quarter.

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Why Revenue Matters for Retail InvestorsRevenue is the most fundamental measure of a company’s performance. Changes over time, particularly when comparing two companies in the same industry, can provide valuable insights about a company’s competitive position and ability to reach new customers.

Image source: The Motley Fool.

Quarter (Period End)Uber Technologies RevenueLyft RevenueQ2 2024 (June 2024)$10.7 billion$1.4 billionQ3 2024 (Sept. 2024)$11.2 billion$1.5 billionQ4 2024 (Dec. 2024)$12.0 billion$1.6 billionQ1 2025 (March 2025)$11.5 billion$1.5 billionQ2 2025 (June 2025)$12.7 billion$1.6 billionQ3 2025 (Sept. 2025)$13.5 billion$1.7 billionQ4 2025 (Dec. 2025)$14.4 billion$1.6 billionQ1 2026 (March 2026)$13.2 billion$1.7 billionData source: Company filings. Data as of May 19, 2026.

Foolish TakeThere is a clear contrast between Uber and Lyft. While Uber experiences greater quarterly revenue volatility, it is growing faster off a larger revenue base.

Uber benefits from greater scale and global reach, allowing it to generate over $53 billion in annual revenue, compared to Lyft’s $6.5 billion.

Both companies are pursuing every opportunity to position themselves for more growth through partnerships. The stakes are massive as the future of transportation is in AI-powered self-driving vehicles.

For Lyft, Google’s Waymo is set to integrate with the Lyft app later this year. However, Uber boasts of a large network of 30 partners that will help it expand robotaxi services to 15 cities by the end of 2026.

Lyft expects continued growth this year, with gross bookings expected to accelerate in the near term. Investors will want to keep a close eye on whether it can accelerate its growth and narrow the gap with Uber. Given Lyft’s discounted share price, it may offer more upside from these levels than Uber, but this will heavily depend on execution and its ability to accelerate revenue growth.

On June 10, 2026, Lyft Inc LYFT shares fell 3.4% to $13.39, continuing a downward trend that has seen the stock decrease by 30.9% year-to-date. The stock has traded within a 52-week range of $12.46 to $25.54, indicating significant volatility over the past year.

GF Value™ verdict: Current price at $13.39 vs GF Value™ of $17.30, representing a 22.6% undervaluation.GF Score™: 76/100, indicating above-average potential for long-term returns.Notable signal: Insiders sold $0.8 million in stock over the last three months with no buying activity. Is LYFT Overvalued or Undervalued? With a current price of $13.39 and a GF Value™ of $17.30, Lyft is estimated to be 22.6% undervalued. This margin of safety may present an attractive opportunity for investors who believe in the company's long-term prospects. However, the GF Valuation label indicates that the stock is considered "Modestly Undervalued," which suggests a cautious approach is warranted. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation could imply potential upside, investors should be cautious due to the stock's recent performance and insider selling activity, which may signal a lack of confidence among those closest to the company.

How Does LYFT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 1.9x 60.0x Forward P/E 23.4x N/A Lyft's current P/E ratio of 1.9x is significantly below its 5-year median P/E of 60.0x and indicates that the stock is trading far below its historical valuation levels. This analysis agrees with the GF Value™ verdict, reinforcing the notion that Lyft may be undervalued in the current market environment.

What Does LYFT's GF Score™ Tell Us? Metric Rating GF Score™ 76 Financial Strength 5/10 Profitability 4/10 Growth 8/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 76/100 suggests that Lyft demonstrates above-average potential for long-term returns. The strongest area is growth, with a ranking of 8/10, indicating robust growth prospects. Conversely, the weakest area is profitability, scored at 4/10, which may raise concerns about the company's ability to sustain its growth amidst current financial challenges.

What Are Insiders Doing with LYFT Stock? In the last three months, insiders sold $0.8 million worth of Lyft stock with no buying activity reported. This trend of selling may indicate a lack of confidence from insiders regarding the future performance of the company. Such actions can often be a red flag for investors, suggesting that those with the most insight into the company are not optimistic about its near-term prospects.

What This Means for Investors Based on the GF Value™ assessment, Lyft Inc is currently undervalued. The substantial difference between its market price and intrinsic value suggests potential for appreciation, but caution is warranted given the recent insider selling and the company's profitability challenges.

For the complete analysis, visit the Lyft Inc LYFT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is LYFT's GF Score™?

LYFT's GF Score™ is 76/100, indicating above-average potential for long-term returns based on key fundamental metrics.

Is LYFT overvalued or undervalued?

LYFT is currently undervalued, with its market price of $13.39 being 22.6% below its GF Value™ of $17.30.

What is LYFT's P/E ratio?

LYFT's P/E ratio is 1.9x, which is significantly lower than its 5-year median P/E of 60.0x, indicating it is trading well below its historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Bristol Myers Squibb (BMY +0.40%) is a well-respected pharmaceutical company. Technically, it was created in 1989 through the merger of two other companies, but both of those businesses were founded in the 1800s. It is a proven survivor that clearly knows how to navigate the highly complex and competitive drug industry. And the stock looks cheap today. But is it really as cheap as it looks?

Bristol Myers Squibb's value appeal Bristol Myers Squibb's price-to-earnings ratio is currently sitting around 16x. That's well below the S&P 500's (^GSPC +0.50%) 27x and the pharmaceutical industry's 24x average. Meanwhile, Bristol Myers Squibb's dividend yield is a highly attractive 4.4%. By comparison, the S&P 500 index has a yield of 1.1%, and the average drug maker's yield is around 1.7%.

Image source: Getty Images.

It would be understandable if value investors jumped aboard. For dividend investors attracted to the lofty yield, the company's 70% payout ratio is a bit high but not unreasonably so. Still, you should ask yourself why the company looks attractively priced before you buy it.

The fly in Bristol Myers Squibb's ointment Bristol Myers Squibb isn't likely to go out of business anytime soon. If your investment horizon is decades long, you may want to own this stock today, given its attractive valuation metrics. However, you'll have to be prepared for some uncertainty through at least the end of 2028. That's because the company has key drugs with upcoming patent expirations. Revlimid and Pomalyst, both cancer drugs, will get hit in 2026, and cardiovascular drug Eliquis, which is marketed with competitor Pfizer (PFE +0.15%), is set to face generic competition in 2028.

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To be fair, the company has been working on its drug pipeline. But research and development don't work on a timeline, while patent expirations do. There could be a timing mismatch that leaves Bristol Myers Squibb's top and bottom lines under material pressure in the near term. So, the stock looks like it is a bargain, but there's a reason for the discounted price.

Bristol Myers Squibb is a long-term commitment The pharmaceutical business is intensely competitive. Bristol Myers Squibb has proven it knows how to survive in the long term, and the price has some value and income appeal today. However, it may not be as cheap as it seems when you factor in near-term patent headwinds. If you are hoping to make a quick buck, you should probably look elsewhere.

That said, if your plan is to hold the stock for decades, Bristol Myers Squibb may still be worth buying. After all, it is probably better to buy a good company at an attractive price than to try to time the bottom with every purchase, which is a virtually impossible task to do consistently.

Interim analyses from PANKU-Breast02 (BL-B01D1-307) and PANKU-Esophagus01 (BL-B01D1-305) presented at ASCO® 2026

SystImmune and Bristol Myers Squibb’s potent dual-targeted EGFRxHER3 bispecific antibody-drug conjugate has now demonstrated clinical benefit in three Phase 3 trials in China, underscoring its broad therapeutic potential in multiple tumor types

REDMOND, Wash. & PRINCETON, N.J.--(BUSINESS WIRE)--SystImmune, Inc. (SystImmune), a clinical-stage biotechnology company, and Bristol Myers Squibb (NYSE: BMY) today announced that SystImmune’s parent company, Sichuan Biokin Pharmaceutical Co., Ltd. (Biokin), reported positive results from prespecified interim analyses of two Phase 3 studies evaluating izalontamab brengitecan (iza-bren), an investigational and potentially first-in-class EGFRxHER3 bispecific antibody-drug conjugate (ADC). The studies demonstrated iza-bren achieved statistically significant and clinically meaningful improvements in overall survival (OS) and progression-free survival (PFS) in heavily pretreated, unresectable locally advanced or metastatic triple-negative breast cancer (TNBC; PANKU-Breast02/BL-B01D1-307) and recurrent or metastatic esophageal squamous cell carcinoma (ESCC; PANKU-Esophagus01/BL-B01D1-305). These data, presented at the 2026 American Society of Clinical Oncology (ASCO®) Annual Meeting, support iza-bren’s potential as a new standard of care in these challenging cancer types.

$BMY and SystImmune announce new data for a dual-targeted EGFRxHER3 bispecific antibody-drug conjugate in triple negative breast cancer and metastatic esophageal squamous cell carcinoma at #ASCO26.

Share Iza-bren has now shown clinical benefit in three Phase 3 trials, underscoring its broad therapeutic potential. PANKU-Breast02 is the first Phase 3 study of a bispecific ADC to report positive results for dual primary endpoints of both PFS and OS in TNBC, while PANKU-Esophagus01 marks the first Phase 3 trial of a bispecific ADC in esophageal cancer to report positive dual primary endpoints of both PFS and OS. Iza-bren previously demonstrated positive phase 3 results in recurrent or metastatic nasopharyngeal carcinoma (NPC), presented at ESMO 2025.

“As a potentially first-in-class EGFRxHER3 bispecific antibody-drug conjugate, iza-bren has now shown significant clinical benefit in three Phase 3 trials in different cancer types, and the strength of these data presented at ASCO further reinforce the value iza-bren can deliver over current standards of care,” said Dr. Yi Zhu, chief executive officer of Biokin. “We are proud to share these results as we continue to evaluate iza-bren to unlock the full potential of this dual mechanism of action to improve outcomes for patients in need.”

“Iza-bren can address a critical gap for patients who develop resistance or experience disease progression after prior therapies and may also hold potential in earlier lines of therapy,” said Cristian Massacesi, MD, executive vice president, chief medical officer and head of development, Bristol Myers Squibb. “We have a broad development program for iza-bren and believe it has the potential to be a cornerstone treatment in a number of different cancers and easily combined with other therapies.”

Results from the Interim Analysis of PANKU-Breast02 (BL-B01D1-307)

The Phase 3 PANKU-Breast02 trial evaluated iza-bren in patients with unresectable locally advanced or metastatic TNBC whose disease progressed following 1-2 prior lines of systemic therapy for advanced disease, including prior taxane therapy. Patients were randomized 1:1 to receive iza-bren (n=207) or physician’s choice of chemotherapy (TPC; n=211), which included eribulin, capecitabine, gemcitabine, or vinorelbine. The study met both dual primary endpoints at a prespecified interim analysis, demonstrating a statistically significant and clinically meaningful improvement in OS and BICR-assessed PFS with iza-bren compared to TPC.

With a median follow-up of 11 months, median OS was 15.9 months with iza-bren vs. 12.5 months with TPC (HR: 0.60; 95% CI: 0.42-0.85; p=0.0019) Median PFS by Blinded Independent Central Review (BICR) was 8.5 months with iza-bren vs. 3.1 months with TPC (HR: 0.29; 95% CI: 0.22-0.38; p<0.0001) The confirmed objective response rate (ORR) assessed by BICR was 51.7% with iza-bren compared to 20.5% with TPC (odds ratio, 4.3; 95% CI: 2.8-6.7) “While there have been significant advancements in breast cancer treatment, advanced triple-negative breast cancer has remained a challenge, with patients facing poor outcomes,” said Dr. Jiong Wu, Fudan University Shanghai Cancer Center. “These results highlight the potential for iza-bren to be a new standard of care as the first bispecific ADC to show improved progression-free and overall survival in a Phase 3 study in this patient population.”

Iza-bren showed a manageable safety profile in this heavily pre-treated patient population, with no new safety signals observed. Grade >3 treatment-emergent adverse events (TEAEs) were predominantly hematologic toxicities and consistent with the known safety profile of iza-bren. Any grade interstitial lung disease (ILD) was reported in 3 (1.4%; 1 case of grade 1 and 2 cases of grade 2) patients treated with iza-bren and 0 patients treated with TPC. Treatment discontinuation due to TEAEs occurred in 4 (1.9%) patients treated with iza-bren and 1 (0.5%) patients treated with TPC.

Results from the Interim Analysis of PANKU-Esophagus01 (BL-B01D1-305)

The Phase 3 PANKU-Esophagus01 trial evaluated iza-bren in patients with recurrent or metastatic esophageal squamous cell carcinoma who had progressed after first-line treatment with a PD-1/PD-L1 inhibitor plus platinum-based chemotherapy (n=249) compared to chemotherapy of physician’s choice (n=248). Results from the interim analysis show iza-bren demonstrated a statistically significant and clinically meaningful improvement in the dual primary endpoints of OS and BICR-assessed PFS.

Median OS was 9.8 months with iza-bren vs. 7.2 months with chemotherapy (HR: 0.64; 95% CI: 0.49-0.83; p=0.0004). Median PFS by BICR was 4.2 months with iza-bren vs. 2.0 months with chemotherapy (HR:0.50; 95% CI: 0.40-0.63; p<0.0001). Iza-bren also demonstrated an improvement in responses with an ORR by BICR of 35.3% compared to 13.1% with chemotherapy. “Metastatic esophageal squamous cell carcinoma is an aggressive disease with a five-year survival rate of less than 5%, and there remains a critical unmet need for treatment options after first-line immunotherapy and chemotherapy,” said Dr. Lin Shen, Peking University Cancer Hospital and Institute. “As the first Phase 3 clinical trial of a novel EGFRxHER3 bispecific antibody-drug conjugate to report positive data in this patient population, these results show the potential for iza-bren to set a new benchmark in significantly extending survival for patients with recurrent or metastatic esophageal squamous cell carcinoma.”

Iza-bren also showed a manageable safety profile in this patient population. Grade >3 treatment-related adverse events (TRAEs), which were predominantly hematologic toxicities, occurred in 85.1% of patients treated with iza-bren and 60.2% of patients who received chemotherapy. TRAEs that led to treatment discontinuation occurred in 2% of patients treated with iza-bren and 3.3% treated with chemotherapy. Treatment-related deaths occurred in 1.2% of patients treated with iza-bren and 1.6% of patients treated with chemotherapy. The rates of all grades and grade >3 ILD were low in the iza-bren arm (1.6%/0.8%) and the chemotherapy arm (0.4%/0.4%).

A New Drug Application for iza-bren for the treatment of recurrent or metastatic esophageal squamous cell carcinoma has been accepted by the Center for Drug Evaluation (CDE) under China’s National Medical Products Administration (NMPA) and included in the priority review process.

The PANKU-Breast02 and PANKU-Esophagus01 studies are sponsored by SystImmune’s parent company, Sichuan Biokin Pharmaceutical Co., Ltd. (Biokin), in Mainland China. Outside of China, iza-bren is jointly developed by SystImmune and Bristol Myers Squibb under a collaboration and exclusive license agreement.

About iza-bren

Iza-bren (BL-B01D1) is a bispecific antibody-drug conjugate (ADC) that targets both EGFR and HER3, which are highly expressed in various epithelial cancers and are known to be associated with cancer cell proliferation and survival. Iza-bren's dual mechanism of action blocks EGFR and HER3 signals to cancer cells, reducing proliferation and survival signals. In addition, upon antibody mediated internalization, iza-bren's therapeutic novel Topo1i payload is released causing cytotoxic stress that leads to cancer cell death.

About SystImmune

SystImmune is a clinical-stage biopharmaceutical company located in Redmond, WA. It specializes in developing innovative cancer treatments using its established drug development platforms, focusing on bi-specific, multi-specific antibodies, and antibody-drug conjugates (ADCs). SystImmune has several assets in various stages of clinical trials for solid tumor and hematologic indications. Alongside ongoing clinical trials, SystImmune has a robust preclinical pipeline of potential cancer therapeutics in the discovery or IND-enabling stages, representing cutting-edge biologics development.

About Bristol Myers Squibb: Transforming Patients’ Lives Through Science

At Bristol Myers Squibb, our mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. We are pursuing bold science to define what’s possible for the future of medicine and the patients we serve. For more information, visit us at BMS.com and follow us on LinkedIn, X, YouTube, Facebook and Instagram.

SystImmune Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the potential clinical benefits of iza-bren, the timing and outcomes of regulatory interactions, and the future development and commercialization of iza-bren. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. SystImmune undertakes no obligation to update any forward-looking statements contained herein, except as required by law.

Bristol Myers Squibb Forward-Looking Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, the research, development and commercialization of pharmaceutical products. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on current expectations and projections about our future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, that are difficult to predict, may be beyond our control and could cause our future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. These risks, assumptions, uncertainties and other factors include, among others, that future study results may not be consistent with the results to date, that izalontamab brengitecan (iza-bren) may not achieve its primary study endpoints or receive regulatory approvals for the indications described in this release in the currently anticipated timeline or at all, any marketing approvals, if granted, may have significant limitations on their use, and, if approved, whether such treatment for such indication will be commercially successful. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect Bristol Myers Squibb’s business and market, particularly those identified in the cautionary statement and risk factors discussion in Bristol Myers Squibb’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The forward-looking statements included in this document are made only as of the date of this document and except as otherwise required by applicable law, Bristol Myers Squibb undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise.

corporatefinancial-news

Bristol Myers secured EU approval for Opdivo plus AVD in newly diagnosed advanced cHL and advanced Camzyos' label expansion review.

HAYWARD, Calif.--(BUSINESS WIRE)--Arcus Biosciences, Inc. (NYSE: RCUS), a clinical-stage, global biopharmaceutical company focused on developing differentiated molecules and combination therapies for people with cancer and inflammatory and autoimmune diseases, today announced a clinical trial collaboration and supply agreement with Bristol Myers Squibb (NYSE: BMY, “BMS”). Under the agreement, Arcus will supply casdatifan, the company’s investigational small-molecule HIF-2a inhibitor, to be evaluated as part of the BMS-sponsored Phase 1/2 ROSETTA RCC-208 clinical trial. This trial evaluates pumitamig (BNT327/BMS986545), an investigational PD-L1/VEGF-A bispecific antibody, being jointly developed by BioNTech and Bristol Myers Squibb, alone or in combination with other potential treatment options in advanced renal cell carcinoma (RCC).

As part of this clinical trial collaboration, casdatifan combinations will be added as two new arms of ROSETTA RCC-208. Each company will retain development and commercial rights to their respective assets, and the agreement is mutually non-exclusive.

"We believe casdatifan can transform the treatment paradigm in kidney cancer, and our development strategy is designed to generate evidence needed to establish casdatifan as a backbone therapy so that every patient has the opportunity to benefit from casdatifan across each line of therapy," said Terry Rosen, Ph.D., chief executive officer of Arcus. "HIF-2a inhibition, PD-L1 and VEGF-A blockade are validated mechanisms in the treatment of kidney cancer with a strong biologic rationale for combination. This strategic collaboration with BMS is a top priority for Arcus in order to potentially deliver an additional effective TKI-free option in the first-line setting."

This collaboration is part of Arcus’s holistic development strategy that is intended to provide physicians and patients with: 1) a casdatifan-based and only HIF-2a inhibitor-inclusive TKI-sparing first-line treatment; 2) a casdatifan-based TKI-inclusive first-line regimen; 3) a second-line HIF-2a inhibitor treatment that builds on the second-line standard-of-care TKI, cabozantinib; and 4) a late-line therapy that has been clinically validated to also provide benefit in patients previously treated with a HIF-2a inhibitor-based therapy.

About Casdatifan (AB521)

Casdatifan is a small-molecule inhibitor of hypoxia-inducible factor 2-alpha (HIF-2a), a master switch that turns on hundreds of genes in response to low oxygen levels. In a majority of people with the most common form of kidney cancer (clear cell renal cell carcinoma; ccRCC), genetic anomalies result in the dysregulation of this master switch and transformation of normal kidney cells into cancerous ones.

Casdatifan was designed to provide deep and durable inhibition of the HIF-2a pathway. Early clinical studies have shown high response rates and a low primary progression rate relative to clinical benchmarks, warranting further investigation in late-stage studies. Casdatifan, which is administered in pill form once daily, has a safety profile that allows it to be investigated in combination with other treatments.

The casdatifan development strategy is designed to generate evidence needed to establish casdatifan as a backbone therapy so that every ccRCC patient has the opportunity to benefit from casdatifan across each line of therapy. In addition to partner-operationalized studies, Arcus is investigating casdatifan across multiple cohorts in the ARC-20 platform study, alone and in combination with other potential new treatment options, including in the:

First-line setting with cohorts evaluating casdatifan plus zimberelimab, an anti-PD-1 (ongoing); and casdatifan plus zimberelimab and ipilimumab, an anti-CTLA-4 (ongoing) Second-line setting with a cohort evaluating casdatifan plus cabozantinib in immunotherapy (IO)-experienced patients (ongoing) Late-line setting with a cohort evaluating casdatifan plus a TKI in both HIF-2a inhibitor-experienced and HIF-2a inhibitor-naive patients (planned) Arcus is also enrolling patients for PEAK-1, the global Phase 3 study evaluating casdatifan plus cabozantinib versus cabozantinib in IO-experienced metastatic ccRCC. Arcus expects to complete enrollment in PEAK-1 and to initiate a Phase 3 study in first-line metastatic ccRCC by year-end 2026.

Casdatifan is an investigational molecule. Approval from any regulatory authority for its use has not been received, and its safety and efficacy have not been established. Taiho has development and commercial rights in Japan and other countries in Asia, excluding China. Arcus Biosciences holds full rights to casdatifan everywhere else globally.

About Pumitamig (BNT327/BMS986545)

Pumitamig is a novel investigational bispecific antibody, jointly developed by BioNTech and BMS, combining two complementary, validated mechanisms in oncology into one single molecule. Pumitamig combines PD-L1 checkpoint inhibition aimed at restoring T cells’ ability to recognize and destroy tumor cells with the neutralization of VEGF-A. BioNTech and BMS are currently advancing pumitamig in a broad clinical trial program with more than 20 clinical trials currently ongoing or planned to evaluate pumitamig either as a monotherapy or in combination with other treatment modalities targeting different oncogenic pathways in more than 10 solid tumor indications.

About Kidney Cancer

According to the American Cancer Society, kidney cancer is among the top 10 most commonly diagnosed forms of cancer among both men and women in the U.S., and an estimated 80,450 Americans will be diagnosed with kidney cancer in 2026. ccRCC is the most common type of kidney cancer in adults. If detected in its early stages, the five-year survival rate for kidney cancer is high; for patients with advanced or late-stage metastatic kidney cancer, however, the five-year survival rate is only 19%. For metastatic kidney cancer, targeted drug therapies are one of the main treatment options.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage, global biopharmaceutical company focused on developing differentiated molecules for the treatment of cancer and inflammatory and autoimmune diseases. In partnership with industry collaborators, patients and physicians around the world, Arcus is expediting the development of its late-stage portfolio of first- and/or best-in-class medicines against well-characterized biological targets and pathways and studying novel, biology-driven combinations that have the potential to help people with cancer live longer. Founded in 2015, the company has advanced multiple investigational medicines into registrational clinical trials including casdatifan, a HIF-2a inhibitor for clear cell renal cell carcinoma, and quemliclustat, a small-molecule CD73 inhibitor for pancreatic cancer. For more information about Arcus Biosciences’ clinical and preclinical programs, please visit www.arcusbio.com.

Arcus Forward-Looking Statements

This press release contains forward-looking statements. All statements regarding events or results to occur in the future contained herein are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the potential of casdatifan and pumitamig to achieve more sustained tumor control and deliver a TKI-free option in the first-line setting, statements regarding Arcus’s development strategies and plans, and the timing and achievement of milestones, including the completion of enrollment in PEAK-1 and the initiation of a Phase 3 study in 1L metastatic ccRCC. All forward-looking statements involve known and unknown risks and uncertainties and other important factors that may cause Arcus’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, risks associated with: managing Arcus’s collaborations; risks associated with manufacturing or supplying casdatifan; the unexpected emergence of adverse events or other undesirable side effects with casdatifan or casdatifan-based combinations; changes in the competitive landscape for Arcus’s programs; and the inherent uncertainty associated with pharmaceutical product development and clinical trials. Risks and uncertainties facing Arcus are described more fully in the “Risk Factors” section of Arcus’s most recent periodic report filed with the U.S. Securities and Exchange Commission (SEC) and in other filings that Arcus makes with the SEC from time to time, which are available at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Arcus disclaims any obligation or undertaking to update, supplement or revise any forward-looking statements contained in this press release, except to the extent required by law.

The Arcus name and logo are trademarks of Arcus Biosciences, Inc. All other trademarks belong to their respective owners.

When it comes to pharmaceutical stocks and yield, Bristol Myers Squibb (BMY +0.40%) and Pfizer (PFE +0.15%) stand out. However, when deciding which of the two is the better high-yield dividend stock, you need to consider numerous criteria, not just the raw yield itself.

When it comes to today's yield, Pfizer is the clear victor. However, when considering whether the higher yield is sustainable, factors such as dividend payout ratios and earnings forecasts start to cast doubt.

With this in mind, let's examine the dividend health of both companies to get a better idea of which of the two is the better choice for income-focused long-term investors.

Image source: Getty Images.

At current prices, Bristol Myers Squibb has a forward dividend yield of around 4.6%. This clearly trails Pfizer's forward yield, which currently comes in at 6.7%. However, the fact that Pfizer's forward yield is so high, especially for a healthcare stock, should signal to you that the market has its own concerns about dividend durability.

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This should be apparent to you as well, once you dive into dividend-related metrics such as each stock's payout ratio. Bristol Myers Squibb has a payout ratio of around 40%, whereas Pfizer's payout ratio is over 60%. In other words, while the former's payout ratio is within the healthy range, Pfizer's payout ratio puts it on the cusp of being too high to be sustainable over the long term.

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At this level, Pfizer generates enough earnings to sustain the dividend, but with so much cash flowing out as dividends, this leaves less capital to pay down debt, fund organic growth, or make new acquisitions. Besides the payout ratio metric, Bristol Myers Squibb also beats Pfizer on dividend growth. Both companies have a similar number of years of consecutive dividend growth.

Bristol Myers Squibb has increased its dividend 18 years in a row, while Pfizer has grown its dividend 16 years in a row. However, over the past decade, average annual dividend growth for the former has outpaced the latter, with Bristol Myers' dividend increasing by an average of 5.3%, versus 4.4% for Pfizer. Hence, even if Pfizer manages to avoid a dividend cut, in time, the yield gap between these two blue chip dividend stocks will continue to narrow.

Which one comes out on top? Bristol Myers Squibb may beat Pfizer in terms of dividend durability and growth potential, but as the saying goes, past performance is not indicative of future results. Both companies have similar short-term growth forecasts. Analyst forecasts call for Pfizer's sales to fall 1.4% this year, and by 3.8% in 2027, with earnings rising 8.7% this year, but essentially flatlining next year.

As for Bristol Myers Squibb, analyst forecasts call for 2026 and 2027 sales to decline 1.8% and 2.3%, respectively, with earnings rising by 3% this year but declining 2.2% next year. That said, as seen from the anticipated 2026 results, both Pfizer and Bristol Myers may be on track to continue delivering numbers that exceed expectations. Both companies have expanded their pipelines, as well as pursued cost-cutting measures.

Investors continue to take a "wait and see" approach. Since January, Bristol Myers and Pfizer shares have generated total returns of 3.2% and 6.1%, respectively. Both stocks also continue to trade at low valuations, with both stocks trading for just under 9 times forward earnings.

So, which of these healthcare dividend stocks is the better buy?? Both companies are facing similar challenges and uncertainty, but Bristol Myers Squibb scores well on dividend growth and durability; consider it the stronger choice.

In the latest trading session, Bristol Myers Squibb (BMY - Free Report) closed at $57.27, marking a +1.18% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.65%. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 4.18%.

The biopharmaceutical company's shares have seen an increase of 0.62% over the last month, not keeping up with the Medical sector's gain of 3.33% and the S&P 500's gain of 5.47%.

The investment community will be paying close attention to the earnings performance of Bristol Myers Squibb in its upcoming release. In that report, analysts expect Bristol Myers Squibb to post earnings of $1.61 per share. This would mark year-over-year growth of 10.27%. At the same time, our most recent consensus estimate is projecting a revenue of $11.67 billion, reflecting a 4.89% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.32 per share and revenue of $47.39 billion, indicating changes of +2.76% and -1.67%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Bristol Myers Squibb. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% upward. Bristol Myers Squibb is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Bristol Myers Squibb is holding a Forward P/E ratio of 8.95. This represents a discount compared to its industry average Forward P/E of 20.92.

It is also worth noting that BMY currently has a PEG ratio of 0.16. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.51 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 40% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Bristol-Myers Squibb Company (BMY) Presents at Goldman Sachs 47th Annual Global Healthcare Conference 2026 Transcript

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Bristol Myers Squibb (BMY - Free Report) New York-based Bristol Myers is one of the leading global specialty biopharmaceutical companies focused on developing treatments targeting severe diseases. Blockbuster immuno-oncology drug Opdivo maintains momentum on consistent label expansions. The company’s efforts to revive its portfolio amid generic competition for legacy drugs like Revlimid, Pomalyst, Sprycel and Abraxane are impressive.

BMY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.8; value investors should take notice.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $6.32 per share. BMY boasts an average earnings surprise of +16.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BMY should be on investors' short list.

In the latest trading session, Bristol Myers Squibb (BMY - Free Report) closed at $56.87, marking a +2.28% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.75% for the day. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 2.54%.

Prior to today's trading, shares of the biopharmaceutical company had lost 1.4% lagged the Medical sector's gain of 3.73% and was narrower than the S&P 500's loss of 1.63%.

The upcoming earnings release of Bristol Myers Squibb will be of great interest to investors. On that day, Bristol Myers Squibb is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 10.27%. Simultaneously, our latest consensus estimate expects the revenue to be $11.67 billion, showing a 4.89% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.32 per share and a revenue of $47.39 billion, signifying shifts of +2.76% and -1.66%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Bristol Myers Squibb. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Right now, Bristol Myers Squibb possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Bristol Myers Squibb is currently trading at a Forward P/E ratio of 8.8. Its industry sports an average Forward P/E of 20.9, so one might conclude that Bristol Myers Squibb is trading at a discount comparatively.

Also, we should mention that BMY has a PEG ratio of 0.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Biomedical and Genetics was holding an average PEG ratio of 1.46 at yesterday's closing price.

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 38% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Etsy (ETSY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Etsy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if ETSY is a promising momentum pick, let's examine some Momentum Style elements to see if this online crafts marketplace holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For ETSY, shares are up 0.61% over the past week while the Zacks Internet - Commerce industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 22.33% compares favorably with the industry's 5.58% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Etsy have increased 9.25% over the past quarter, and have gained 42.6% in the last year. In comparison, the S&P 500 has only moved 4.43% and 30.47%, respectively.

Investors should also take note of ETSY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now ETSY is averaging 3,282,847 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ETSY.

Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ETSY's consensus estimate, increasing from $3.43 to $3.71 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that ETSY is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Etsy on your short list.

Etsy announced Tuesday the launch of its native app within ChatGPT, opening up a new way for shoppers to explore its catalog of over 100 million listings.

The new experience is designed to move beyond the limitations of traditional keyword queries. Instead of typing something like “wooden coffee table,” then scrolling and adjusting filters, users can now express what they’re looking for in natural language. For instance, “Help me find a Mother’s Day gift under $100 for my mom who loves gardening.”

Now live in beta, the feature allows users to tag @Etsy directly within a prompt. From there, the Etsy app in ChatGPT surfaces relevant product listings that users can browse, compare, and click through to Etsy for additional details or purchase.

This isn’t Etsy’s first experiment inside ChatGPT. Back in September, Etsy became an early partner in ChatGPT’s Instant Checkout integration, which let users buy products directly inside the chat interface. However, the initiative ended in March, suggesting it didn’t perform as OpenAI had hoped. It was reported that Etsy didn’t see a large volume of sales from the integration, leading Etsy to start building a native app within ChatGPT instead. 

Alongside this launch, Etsy also revealed it’s testing a beta conversational search experience within its platform, specifically geared toward helping users find gifts. The gift assistant acts as a personal shopper, offering a guided, conversational way to discover ideas, narrow down preferences, and surface relevant products.

Image Credits:Etsy This builds on Etsy’s broader AI push, which includes an AI-powered discovery experience featuring curated collections and a suite of seller tools, including a tool that helps generate product titles and descriptions, as well as a writing assistant to help draft messages to buyers. In 2024, Etsy introduced a new “Designed” label to identify AI content, part of an effort to increase transparency as AI-generated artwork becomes more prevalent on the platform.

The news of a ChatGPT integration comes a week after Etsy reported its Q1 2026 earnings, surpassing revenue expectations with $631 million, and marketplace gross merchandise sales were up 6% year over year. Notably, active buyers increased for the first time in two years to 86.6 million. Etsy also touted 5.6 million active sellers on the platform. 

In February, the company announced it was selling Depop to eBay for $1.2 billion in cash, a move aimed at doubling down on its core marketplace.

Etsy joins a growing list of companies building native apps within ChatGPT, including Angi, SeatGeek, Tubi, and Wix. Developers have been able to build apps within the chatbot since October.

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Lauren covers media, streaming, apps and platforms at TechCrunch.

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Etsy's current foray into ChatGPT may be less about making money and more about learning how to develop its own AI tools.

Anna Gragert (she/her/hers) was previously the lifestyle editor at HelloGiggles, the deputy editor at So Yummy and the senior lifestyle editor at Hunker. Over the past 12 years, Anna has also written for the LA Times, Elle, Bust Magazine, Dazed, Apartment Therapy, Well+Good and more. At CNET, she's a senior editor on the Healthy Home team, and her coverage includes health, wellness tech, meal kits and home and kitchen tech with a focus on the technology that aims to help us live our healthiest, happiest lives.

Expertise Health and wellness tech, meal kits, home and kitchen tech, food, mental health

3 min read

Etsy is known for its marketplace of handcrafted goods, but despite that human touch, the company wants its shoppers to adopt AI. 

On Tuesday, Etsy launched a beta version of its app in the OpenAI-owned ChatGPT. Once connected to the ChatGPT Etsy app, all you have to do is tag @Etsy and provide a prompt for it to generate results that can be compared or opened on the Etsy website. 

In an Etsy News blog post, Chief Product and Technology Officer Rafe Colburn wrote that the ChatGPT app "offers shoppers a deeper view into sellers' items" and can help when nuance matters. 

"At the same time, the Etsy app in ChatGPT is poised to give us earlier insight into the moments Etsy is relevant in a shopper's journey, opening the door to understanding how and when shoppers choose to use conversational search," Colburn wrote.

In other words, while the ChatGPT Etsy app helps customers locate specific items, it also provides Etsy with information about when people choose to use both ChatGPT and Etsy while shopping. 

I took ChatGPT's Etsy app for a test runAfter connecting the Etsy app, I told @Etsy that I'm looking for a handmade birdhouse under $50. It responded with five listings showing the item name, price, seller name, rating and whether there's free shipping. There were also buttons above the listings I could click to filter by handmade, personalized, under $25 and free shipping.

I found it interesting that I could filter by "handmade," even though that was a keyword in my prompt. When I selected the filter, only one result disappeared: a PDF for a DIY birdhouse. 

What it looks like when you use the Etsy app on ChatGPT to find a handmade, under-$50 birdhouse.

ChatGPT/Screenshot by CNETHowever, I received these same filter options with different prompts -- a birthday gift for a cat-loving friend and a Mother's Day gift under $100 -- so they seem to be there by default. One exception: For the Mother's Day gift under $100, the filter for "under $25" changed to "under $50," meaning it will increase as your budget increases.

When I clicked "view details" under a listing, I was, as promised, taken to the item's page on Etsy.

Under the ChatGPT results, it noted that some birdhouses are merely decorative and not functional for birds, and that shipping can push the total cost to over $50. It also listed the two results most practical for birds, along with their prices and shipping costs. 

To narrow down my options or find sturdy, weatherproof birdhouses, ChatGPT said I could tell it more about the birds I want to attract and whether I want a birdhouse for decoration or actual nesting.  

On the other hand, the Etsy website allows me to filter by physical items, those that ship from the US, different birdhouse materials and styles, specific bird species, features such as weatherproof and squirrel-proof and more.

This isn't Etsy's first ChatGPT rodeoWhen ChatGPT launched Instant Checkout in September to allow people in the US to purchase products through ChatGPT, Etsy was the first partner. Six months later, in March, Modern Retail, a media brand covering the retail industry, reported that both OpenAI and its retail collaborators had pulled back on the feature. 

An Etsy spokesperson told Modern Retail that while the Instant Checkout integration did get potential buyers to see Etsy products and drove referral traffic, Etsy did not see "a large volume of sales."

When asked why it launched the ChatGPT app after the previous Instant Checkout integration failed to drive sales, a representative for Etsy didn't immediately respond.

Etsy's AI futureAs Etsy continues testing its ChatGPT beta app, it's using what it learns to design a similar conversational experience on Etsy. "It's still early, but we're iterating quickly and learning from real usage what's actually valuable to shoppers," Colburn wrote.

In a photo shared within the blog post, an AI chatbot called Gifting Assistant is shown helping someone find a Mother's Day gift under $150.

A sneak peek at Etsy's Gifting Assistant in beta.

EtsyWith this context, it would seem that Etsy's ChatGPT app is less about driving sales and more about the company figuring out how to design its own AI tools. 

(Disclosure: Ziff Davis, CNET's parent company, filed a lawsuit against OpenAI in 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

ANNA GRAGERT

Senior Editor, Health and Home

Anna Gragert (she/her/hers) was previously the lifestyle editor at HelloGiggles, the deputy editor at So Yummy and the senior lifestyle editor at Hunker. Over the past 12 years, Anna has also written for the LA Times, Elle, Bust Magazine, Dazed, Apartment Therapy, Well+Good and more. At CNET, she's a senior editor on the Healthy Home team, and her coverage includes health, wellness tech, meal kits and home and kitchen tech with a focus on the technology that aims to help us live our healthiest, happiest lives. See full bio

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

American consumers are rerouting their spending rather than pulling back. With University of Michigan sentiment at 48.2, the savings rate down to 3.6% from 5.1% in early 2025, and energy prices up 14.4% year-over-year, households are making rational adjustments: buying private label at Costco, hunting TJX racks for branded apparel, fixing the old Hyundai instead of financing a new one, and listing the kids’ outgrown clothes on eBay. Consumers who are highly deliberate about what they buy (the selective shopper) and those who care about sustainability (the circular economy) share the same core behaviors and are responding sensibly to a higher-cost world.

That shift is structural. Six ETFs sit closest to the money flow:

SPDR S&P Retail ETF (NYSEARCA: XRT) ProShares Online Retail ETF (NYSEARCA: ONLN) Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ: PSCD) Global X E-commerce ETF (NASDAQ: EBIZ) Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) VanEck Retail ETF (NASDAQ: RTH). They split cleanly into two camps: the resale and off-price plays (XRT, ONLN, EBIZ, PSCD) and the trade-down beneficiaries (XLP, RTH).

The Macro Setup Behind the Behavior Shift Wages are rising. Average hourly earnings reached $37.41 in April 2026, up from $36.12 a year earlier. But the consumer price index climbed from 320.8 to 333.0 over the same span, with goods inflation running 3.8% and core personal consumption expenditures at 3.2%. Real purchasing power is eroding faster than nominal pay can patch it. The behavioral response is visible in retail sales hitting a record $757.1 billion in April 2026: the spending is happening, just not where it used to.

XRT: The Cleanest Selective-Shopper Trade XRT is the rare retail fund built around equal weighting as a deliberate design choice. Off-price names like TJX, Ross, Burlington, and Ollie’s sit alongside resale platforms eBay at roughly the same portfolio weight as Amazon would carry in a cap-weighted peer. That structure gives the fund outsized exposure to exactly the names benefiting from trade-down and secondhand migration.

The catch shows up in performance: XRT is down over 8% year to date to near $17 a share, with broader specialty retail weighing on the basket even as the off-price subset gains share. Investors who want pure exposure to the selective shopper without mega-cap dilution accept that volatility. It is the best vehicle in the lineup for the resale and off-price thesis specifically, but it will not move like staples on bad sentiment days.

ONLN: The Digital Resale Channel ONLN concentrates in online retailers with meaningful weight in eBay, Etsy, and Amazon, plus international marketplace operator MercadoLibre. The thesis is that secondhand commerce is migrating to digital faster than it is leaving brick-and-mortar thrift, and the platforms taking listing fees and transaction cuts win regardless of which seller moves the sweater.

The fund is concentrated. A handful of names drive most of the return, which means a soft Amazon quarter can swing the whole portfolio. Shares are about $55 apiece, down 7.0% year to date but up 14.9% over the trailing year. The tradeoff is single-stock risk dressed up as a thematic basket.

PSCD: The Overlooked Small-Cap Angle PSCD is the contrarian pick on this list. It holds smaller specialty retailers, auto parts and repair names, and value-oriented discretionary businesses that screens dominated by Amazon and Tesla will never surface. The repair economy lives here: when motor vehicle PCE drops year-over-year, from $808.4 billion to $780.9 billion, the parts and service aftermarket gets the wallet share.

Small caps have been punished. PSCD is down 5.0% year to date and trades near $100, well below its prior highs. That is exactly why it belongs on this list. It is the long tail of the trend at a depressed entry, with operating leverage to a consumer who keeps repairing instead of replacing.

EBIZ: Global E-commerce and Marketplaces EBIZ extends the marketplace thesis internationally, with weight in MercadoLibre, Shopify, and other global platforms where resale and C2C commerce are growing faster than U.S. peers. The structural argument is that emerging-market consumers adopted secondhand commerce digitally without ever building the suburban thrift-store infrastructure that defined the U.S. resale economy.

The price has not cooperated. At over $27 a share, EBIZ is down 16.2% year to date and 10.3% over the trailing year, the worst performer in this lineup. For an investor who already owns ONLN, EBIZ is duplicative. For one who wants international marketplace exposure without buying MercadoLibre directly, it is the most efficient option available.

XLP: The Trade-Down Anchor on Staples XLP is the standout performer in this group and the clearest beneficiary on the staples side. It is up 10.1% year to date to almost $86, with Walmart at 12.1% and Costco at 9.5% of the portfolio. Those two names alone capture the bulk of the trade-down in groceries and household goods, and Target adds another 3.8%.

The fund carries an eight-basis-point expense ratio and a 2.6% dividend yield, making it one of the cheapest ways to own this exposure. The tradeoff is that XLP is also heavy in tobacco (Philip Morris, Altria) and beverages (Coca-Cola, PepsiCo), which dilute the pure discount-retail thesis. Investors who want trade-down exposure with defensive income should start here. Those who want concentrated discount retail need RTH.

RTH: Mega-Cap Winners Take the Share RTH is cap-weighted and top-heavy in Amazon, Walmart, Home Depot, Costco, and Lowe’s. That structure is a feature for this theme. When consumers tighten, the giants gain share, and the home-improvement names capture the repair-rather-than-renovate household that is fixing the existing roof instead of trading up.

At about $263, RTH is up 4.7% year to date and 10.4% over the trailing year, the second-best performer behind XLP. The tradeoff is concentration: a bad Amazon quarter moves the fund meaningfully. For investors who believe the trade-down winners are already obvious and want to own them in size, this is the most direct vehicle.

How to Choose The decision turns on which side of the consumer behavior shift you want to own. XLP and RTH are the defensive trade-down plays, already showing positive returns and built around the dominant winners. They suit investors who want the thesis with lower volatility and a clear income or mega-cap profile. XRT, ONLN, EBIZ, and PSCD are the offensive resale and off-price plays, currently in drawdown but holding the names with the most operating leverage if circular-economy adoption accelerates. XRT is the cleanest single fund for that side. PSCD is the most overlooked. Pairing one from each camp captures the full behavior shift without doubling up on Amazon and Walmart through three different tickers.

On May 20, 2026, Etsy Inc ETSY shares rose 5.7% today, bringing the current price to $60.89. The stock has experienced a 52-week range of $44.00 to $76.52, indicating some volatility over the past year.

GF Value™ verdict: Current price is $60.89, which is 1.2% undervalued compared to the GF Value™ of $61.62.GF Score™: 84/100, indicating a strong overall assessment.Notable signal: Insiders sold $18.1M worth of shares in the last three months, with no buying activity reported. Is ETSY Overvalued or Undervalued? Etsy Inc's current share price of $60.89 is slightly below the GF Value™ estimate of $61.62, reflecting a 1.2% margin of safety. This suggests that the stock is undervalued relative to its intrinsic value, providing a potential opportunity for investors. However, the GF Valuation label of "Fairly Valued" indicates that while the stock could be seen as a bargain, caution is warranted due to other factors at play, including recent insider selling. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The marginal undervaluation of Etsy's stock could represent a buying opportunity for those who believe in the company’s growth potential. However, the recent trend of insiders selling shares may raise some concerns regarding the company's short-term outlook. Investors should weigh these elements carefully before making any decisions.

How Does ETSY's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.4x 34.1x Forward P/E 22.1x - Currently, Etsy's P/E (TTM) of 25.4x is significantly below its 5-year median P/E of 34.1x, indicating that the stock is trading at a lower valuation compared to its historical norms. The forward P/E of 22.1x further supports this notion of relative undervaluation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the idea that Etsy may offer a favorable entry point for prospective investors.

What Does ETSY's GF Score™ Tell Us? Metric Rating GF Score™ 84 Financial Strength 5/10 Profitability 8/10 Growth 6/10 Valuation 9/10 Momentum 8/10 The GF Score™ of 84/100 indicates a strong overall assessment of Etsy's stock, with particular strengths in Profitability (8/10) and Valuation (9/10). However, the Financial Strength rating of 5/10 suggests that there may be some weaknesses in the company's balance sheet or cash flow management. Overall, the strong Valuation and Profitability scores imply that Etsy is performing well financially, while the average Financial Strength score signifies a need for caution.

What Are Insiders Doing with ETSY Stock? In recent months, insiders at Etsy have sold a total of $18.1 million in shares, with no buying activity reported. This pattern of selling could be interpreted as a sign of caution regarding the company's performance or outlook. While insider selling does not always predict future stock performance, it can indicate that those closest to the company may have reservations about its near-term prospects. Therefore, investors should consider this factor when evaluating their positions in Etsy.

What This Means for Investors Based on the GF Value™ assessment, Etsy Inc ETSY is currently fairly valued, suggesting that the stock is positioned near its intrinsic value. While there may be a slight opportunity for undervaluation based on current price versus GF Value™, the recent insider selling and average Financial Strength rank present potential risks that should be considered before making investment decisions.

For the complete analysis, visit the Etsy Inc ETSY stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ETSY's GF Score™?

The GF Score™ for Etsy is 84/100, indicating a strong overall assessment and suggesting that the stock has the potential for favorable long-term returns.

Is ETSY overvalued or undervalued?

Etsy is currently considered fairly valued, with a slight undervaluation of 1.2% compared to the GF Value™ estimate.

What is ETSY's P/E ratio?

Etsy's P/E (TTM) is 25.4x, which is significantly below its 5-year median P/E of 34.1x, indicating that the stock is currently trading at a discount relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Etsy, Inc. (ETSY) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

On May 28, 2026, Etsy Inc ETSY shares rose 4.7% to $66.78. The stock has seen significant price fluctuations over the past year, with a 52-week range between $44.00 and $76.52. The recent upward trend reflects a year-to-date increase of 20.4% and a one-year gain of 29.8%.

GF Value™ verdict: Current price of $66.78 is 8.1% above the GF Value™ of $61.76, indicating the stock is overvalued.GF Score™ is 80/100 (Strong), suggesting a solid overall performance across various metrics.Notable signal: Insider activity shows that insiders sold $18.8M worth of shares in the last 3 months, indicating potential concerns about the company's future performance. Is ETSY Overvalued or Undervalued? The current price of Etsy Inc ETSY at $66.78 is significantly higher than the GF Value™, which estimates the fair value at $61.76. This results in an overvaluation of approximately 8.1%, which may pose some risks for potential investors. The GF Valuation label categorizes Etsy as fairly valued, suggesting that the stock price is not justified by its intrinsic value based on historical trading multiples, past business growth, and future performance estimates.

Given that the stock is trading above its intrinsic value, investors should be cautious. A premium valuation can lead to increased volatility if market sentiment shifts or if the company fails to meet growth expectations. The margin of safety is minimal, which means investors may want to consider the inherent risks of entering a position at this level.

How Does ETSY's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.8x 34.0x Forward P/E 24.1x N/A Etsy's current P/E (TTM) of 27.8x is below its 5-year median P/E of 34.0x, indicating that the stock is trading at a lower valuation compared to its historical average. The forward P/E of 24.1x suggests that analysts expect earnings to grow in the future. This P/E analysis aligns with the GF Value™ verdict, reinforcing the view that the stock is presently overvalued, considering its historical performance metrics.

What Does ETSY's GF Score™ Tell Us? Metric Rating GF Score™ 80 Financial Strength 5/10 Profitability 8/10 Growth 5/10 Valuation 7/10 Momentum 8/10 The GF Score™ of 80/100 indicates a strong overall performance, particularly in profitability and momentum, where the scores are 8/10. However, financial strength and growth lag behind at 5/10, highlighting potential vulnerabilities in the company's balance sheet and growth trajectory. The valuation rank of 7/10 suggests that while the stock may be overvalued, it still holds some merit in comparison to others in the same industry.

What Are Insiders Doing with ETSY Stock? Recent insider activity has revealed that insiders sold approximately $18.8 million worth of Etsy shares over the last three months without any reported buying activity. This trend suggests that insiders may have concerns regarding the company's future performance or valuation levels, which could be a red flag for potential investors.

The lack of insider buying further emphasizes caution, as insiders are often seen as having a better understanding of the company's prospects. Their selling could be interpreted as a signal that they believe the stock is presently overvalued or that they anticipate challenges ahead.

What This Means for Investors Based on the current analysis, Etsy Inc ETSY is considered overvalued according to GF Value™, with a price exceeding its estimated fair value by 8.1%. This overvaluation, combined with the recent insider selling and mixed indicators from the GF Score™, suggests that potential investors should exercise caution before entering or expanding positions in the stock.

For the complete analysis, visit the Etsy Inc ETSY stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ETSY's GF Score™?

ETSY's GF Score™ is 80/100, indicating a strong overall performance across multiple metrics, suggesting the company has solid potential for long-term returns.

Is ETSY overvalued or undervalued?

ETSY is currently overvalued, with a GF Value™ of $61.76 compared to the current price of $66.78, reflecting an 8.1% overvaluation.

What is ETSY's P/E ratio?

ETSY's P/E ratio (TTM) is 27.8x, which is below its 5-year median of 34.0x, indicating that the stock is trading at a lower valuation compared to its historical average.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

A month has gone by since the last earnings report for Etsy (ETSY - Free Report) . Shares have added about 3.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Etsy due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Etsy, Inc. before we dive into how investors and analysts have reacted as of late.

ETSY Q1 Earnings & Revenues Surpass Estimates, Both Increase Y/YEtsy reported first-quarter 2026 earnings of 89 cents per share from continuing operations, surpassing the Zacks Consensus Estimate of 62 cents by 43.55%. This compares favorably with a loss of 33 cents per share in the year-ago quarter.

First-quarter 2026 revenues rose 3.1% year over year to $631.3 million. The figure surpassed the Zacks Consensus Estimate of $616 million by 2.4%. Revenue growth was primarily driven by strength in advertising and services.

Year-over-year continuing operations comparisons include Reverb in the first quarter of 2025 but reflect the Etsy marketplace only in the first quarter of 2026, following Reverb's divestiture in June 2025.

ETSY's Q1 Top-Line DetailsMarketplace revenues were $432.8 million (68.5% of total revenues), up 1.1% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, marketplace revenues grew 6.3% year over year.

Services revenues were $198.5 million (31.5% of total revenues), up 7.9% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, services revenues rose 10.5% year over year, led by Etsy Ads and Offsite Ads, with Etsy Payments also contributing. The stronger expansion in services reflects Etsy's ongoing shift toward monetizing seller services, particularly advertising, which continues to enhance take rate and overall revenue mix. Etsy Payments also contributed to services growth.

ETSY's Active User Base & GMSEtsy's trailing 12-month active buyer base was 86.6 million, down 2.1% year over year but up 0.1% sequentially, marking the first quarter of sequential growth in two years. New buyers totaled 5 million, up 2.3% year over year and reactivated buyers reached 6.9 million, up 6.6% year over year. Combined gross buyer additions were 11.9 million, up 4.8% year over year.

The active seller base was 5.6 million, up 3.3% year over year, representing the first period of year-over-year growth since the introduction of the seller setup fee.

Etsy marketplace GMS was $2.5 billion, up 5.5% year over year and representing a 540-basis-point improvement over the fourth-quarter 2025 growth rate. On a currency-neutral basis, the Etsy marketplace GMS grew 3.6% year over year.

Mobile app GMS grew 11.2% year over year, accelerating from 6.6% last quarter, with app share reaching approximately 47% of total GMS, expanding 240 basis points (bps) year over year. Non-app GMS also improved, growing 1% year over year versus a decline of 4.8% last quarter. GMS per active buyer reached $122 on a trailing 12-month basis, up 1.5% year over year for the first time since 2022 and marking a fourth consecutive quarter of sequential improvement.

The Etsy marketplace take rate for the first quarter reached 25.7%, expanding 180 bps year over year. Take rate expansion was led by Etsy Ads on the back of machine learning improvements to ad relevance and seller budget pacing. Offsite Ads and Etsy Payments also contributed to the take rate expansion.

ETSY’s Operating ResultsIn the first quarter of 2026, total operating expenses were $335.8 million on a continuing operations basis, down 25.1% year over year. The prior-year period included a $101.7 million asset impairment charge; absent that, total operating expenses declined modestly year over year on a like-for-like basis.

Marketing expenses were $174.2 million. As a percentage of revenues, marketing expenses declined 40 bps year over year to 27.6% on a continuing operations basis, reflecting targeted portfolio mix shifts toward paid search and owned channels and the full in-sourcing of paid social efforts.

Product development expenses were $99.1 million. As a percentage of revenues, product development expenses declined 60 bps year over year to 15.7%, as modestly higher employee costs were offset by savings in other areas.

General and administrative (G&A) expenses were $62.5 million. As a percentage of revenues, G&A expenses contracted 190 bps year over year to 9.9%, benefiting from a one-time reversal of non-income tax expense and stable employee costs on a larger revenue base.

Adjusted EBITDA grew 6.4% year over year to $184.7 million on a continuing operations basis. The adjusted EBITDA margin expanded 100 bps year over year to 29.3%. Operating income was $119.8 million, compared to an operating loss of $3.9 million in the year-ago quarter, with the prior period weighed by the asset impairment charge.

ETSY's Balance SheetAs of March 31, 2026, cash and cash equivalents totaled $1.21 billion, down sequentially from $1.36 billion as of Dec. 31, 2025. Total liquidity, including short and long-term investments, was approximately $1.58 billion, a sequential decline from approximately $1.71 billion at year-end 2025.

Long-term debt stood at $2.33 billion as of March 31, 2026, up marginally from $2.33 billion as of Dec. 31, 2025, with short-term debt also stable at $649.3 million, unchanged sequentially. Net cash provided by continuing operations was $102.5 million in the quarter, representing free cash flow conversion of approximately 50% of adjusted EBITDA, compared to approximately 29% in the year-ago quarter.

Under its share repurchase program, Etsy repurchased approximately $145 million or 2.7 million shares of common stock in the first quarter of 2026. As of March 31, 2026, $827.9 million remained on the current board-authorized repurchase programs.

ETSY's Q2 & 2026 GuidanceWith Depop classified as a discontinued operation beginning in the first quarter of 2026, all guidance pertains to the Etsy marketplace only. The pending sale of Depop to eBay for $1.2 billion is expected to close by the end of the third quarter of 2026.

For the second quarter of 2026, Etsy anticipates the take rate to be approximately 25.7%. Marketplace GMS is projected to be between $2.48 billion and $2.53 billion, representing 3% to 5% year-over-year growth. The adjusted EBITDA margin is expected to be in the range of 27% to 29%.

For 2026, management now expects the Etsy marketplace GMS to grow in the low single-digit range, an improvement from prior guidance, with year-over-year growth expected in each quarter. The full-year adjusted EBITDA margin outlook of 28% to 30% is unchanged from prior guidance.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 15.99% due to these changes.

VGM ScoresCurrently, Etsy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Etsy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Online resale app Vinted is seeing a structural shift in consumer behaviour, as habits form around the resale economy, the company's marketplace boss told CNBC on Monday.

Vinted, the consumer-to-consumer platform allowing customers to sell unwanted items like clothing, electronics, or even furniture, has seen rapid growth in recent years, boosted by consumers increasingly looking for value amid rising costs of living globally.

The value of items sold on Vinted grew nearly 50% last year, as it launched in more European markets.

"It's a fundamental change in consumption towards second hand, and I think that is very much here to stay," Adam Jay, CEO of Vinted Marketplace, told CNBC. "Vinted was growing well before the current economic difficulties, the cost of living crisis, inflation, and has continued to grow well in times of difficulty and stress."

His comments come as Vinted in late April completed a secondary shares transaction of 880 million euros ($1.02 billion), valuing the Lithuanian startup at over $9 billion.

Vinted's rapid growth and multi-billion dollar valuation have fueled intense speculation regarding a potential blockbuster IPO. 

The company's robust financial health also signals that it is under little pressure to list soon, as it is cash-positive and capable of raising nearly a billion euros in private capital.

Executives have hinted at an upcoming IPO but haven't given a timeline. Jay said he was happy with the current investors, but declined to comment on the timing and location of a potential IPO.

The secondary transaction led by EQT brought on new investors such as Schroders Capital and BlackRock, and saw existing shareholders like Baillie Gifford increase their position.

It introduced "institutional, long-term investors that can hold across private and public markets, while providing liquidity to existing shareholders and employees," Vinted said at the time. The company didn't raise any new primary capital in this transaction.  

Expanding beyond fashion and EuropeOnline secondhand apparel is growing rapidly, and at twice the speed of the overall market, according to market research firm GlobalData.

The explosive growth is partially because the secondhand market represents a win-win for buyers and sellers, according to Jay. "You've got this habit being formed, you've got this big social impact, climate impact, and that… combines to be the Vinted equation." 

Vinted coined the term "Vinted math," referring to consumers who view second hand as an easy and more affordable option, and consider the resale value when buying new items.

Vinted users saved 21.6 billion euros on fashion in 2025, compared to retail prices, paying on average 72% less than the original price, according to the company's 2025 Impact Report. 

Vinted is now trying to take that formula across the Atlantic as well as to new categories.

"It took us a long time before we decided to go beyond fashion, and we really needed to be confident that our fashion marketplace was working right across Europe," said Jay. 

"We were nervous because a lot of what our members tell us they love about Vinted is that it's simple, it's easy to use, it's really clear how it works, and we were worried that we'd lose that as we started layering in other categories." 

Ultimately, it had enough signals to take the leap, such as feedback from users having been creative in selling non-fashion items even before Vinted officially expanded its categories beyond apparel.

Vinted is currently present in 26 countries, with France and the UK being the biggest markets. The company has had a presence in the U.S. since 2013, but it only earlier this year started being more active in marketing its product and trying to grow that market. 

There's an "enormous opportunity" in the U.S., but success could take "weeks, months, and maybe years," Jay said.

It has historically been challenging for European tech and consumer companies to successfully bring their business models to the U.S. 

One of the biggest challenges in taking on the U.S. market is high shipping costs, Jay said. 

Vinted is also building out its shipping and payments infrastructure via Vinted Go and Vinted Pay. Its expansion into logistics, wallet infrastructure, and new markets is having an impact on the company's bottom line. 

Net profit declined by 19% in 2025 compared to the previous year. Even as revenue rose 38% to 1.1 billion euros. Its gross merchandise value (GMV) spiked 47% to 10.8 billion euros.

The platform also still has some way to go before it can compete with the likes of, for example eBay, which reported GMV of $79.6 billion in 2025. EBay also recently said it plans to buy fashion marketplace Depop from Etsy for about $1.2 billion to strengthen its fashion offering and attract a younger demographic.

"We're here for the long term," Jay said in response to a question of whether rapid expansion is the best use of capital for a company eyeing public markets. "We're trying to make the investments, all of it is the unsexy stuff, make the unsexy investments that make secondhand first choice worldwide."

Wayfair narrowed its loss in the first quarter, but said the year has been tough on the furniture industry so far.