BHC Stock Analysis: Buy, Sell, or Hold?
BHC - Bausch Health Companies Inc
$5.40
0.37 (7.36%)
▲
5d:
+8.22%
30d:
-9.24%
90d:
-24.26%
BUY
HIGH Confidence
Analysis Updated: Mar 31, 2026 12:00 AM ET
Earnings: Apr 29, 2026
27d
Smart Money Accumulation
BHC is down 3.7% this week, but smart money is accumulating calls. Top strike: $6 2026-05-01 with 41 OI. Call ratio: 87% View Scanner →
Strength: 5.6/10
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: BHC appears deeply undervalued. Market expects -3.7% annual earnings decline despite 1368% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: BHC appears deeply undervalued. Market expects -3.7% annual earnings decline despite 1368% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$5.39
Based on -2.1% avg growth
INTRINSIC VALUE TODAY
$3.35
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 1.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: BHC is currently trading at $5.40, which is considered fair relative to its 30-day fair value range of $5.02 to $5.82. From a valuation perspective, the stock is trading at a discount (Forward PE: 1.3) compared to its historical average (1.5). Remarkably, the market is currently pricing in an annual earnings decline of 3.7% over the next few years. This pessimistic expectation contrasts with the company's recent 1368.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, BHC is in a strong uptrend. The price is approaching resistance at $5.30. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 7.4% recently.
Market Sentiment: BHC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $7.71 (+42.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, BHC is in a strong uptrend. The price is approaching resistance at $5.30. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 7.4% recently.
Market Sentiment: BHC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $7.71 (+42.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$5.02 -
$5.82
Company Quality Score
67/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
88.1%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+7.4%)
- BULLISH: Trading 42.9% below Wall St target ($7.71)
Fair Price Analysis
30-Day Fair Range
$5.02 -
$5.82
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$4.93
Resistance Level
$5.30
Current Trend
Strong Uptrend
Technical data as of
Mar 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
1.34
Wall Street Target
$7.71
(+42.9%)
Revenue Growth (YoY)
9.3%
Earnings Growth (YoY)
1368.0%
Profit Margin
1.5%
Valuation Discount vs History
-3.7% cheaper
PE vs Historical
1.3 vs 1.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.7%
(market-implied from PE analysis)
1-Year Target
$5.20
(-4%)
2-Year Target
$5.01
(-7%)
3-Year Target
$4.82
(-11%)
3-Yr Target (if PE normalizes)
(PE: 1→2)
$5.38
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: -8.2%)
$69.41
(+1185%)
Base:
(SPY PE: 1.3, Growth: -8.2%)
$4.17
(-23%)
Bear:
(PE: 1.1, Growth: -8.2%)
$3.55
(-34%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (12x PE), but valuation improves significantly next year (1x PE) as earnings recover.
Trailing PE: 11.93 | Current EPS (TTM): $0.42
Bull Case
$11.02
(+116%)
Analyst growth 100.0%, PE expands to 13.1
Base Case
$10.02
(+97%)
Market implied 100.0%, PE stable at 11.9
Bear Case
$3.41
(-33%)
Severe decline -20.0%, PE contracts to 10.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 1.3 to 1.5
Stabilization Target:
$6.03
(+11.6%)
PE Expansion Potential:
+11.6%
Share & Embed Analysis
Last updated: April 01, 2026 9:42 AM ET
Data refreshes hourly during market hours. Next update: 10:42 AM
Data refreshes hourly during market hours. Next update: 10:42 AM
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Technical Signals Check
Is BHC showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced BHC Option Strategies
Professional options setups generated by AI based on today's BHC price and gamma walls.
