Why Did Bausch + Lomb Plunge 13.81%?

On April 10, 2025, Bausch + Lomb's stock experienced a significant drop of 13.81% in pre-market trading, reflecting a continuation of recent market volatility and investor concerns.

Bausch + Lomb has seen a substantial decline in its share price over the past month, with a 26% drop, extending a challenging year for shareholders. The company's price-to-sales (P/S) ratio of 0.9x, while appearing attractive compared to the broader medical equipment industry, may not fully capture the underlying issues affecting its stock performance.

Despite recent revenue growth, analysts anticipate that Bausch + Lomb's revenue will increase by only 5.0% annually over the next three years, lagging behind the industry's expected 9.1% growth. This outlook has likely contributed to the low P/S ratio, as investors are cautious about the company's future prospects.

The company's balance sheet and financial health are also critical factors to consider. While the current P/S ratio may not be the sole determinant of investment decisions, it serves as a useful indicator of market expectations for future revenue growth. Given the current circumstances, it is challenging to foresee a strong rebound in Bausch + Lomb's share price in the near term.