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Novo Nordisk (NVO) Stock Sinks As Market Gains: What You Should Know
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Novo Nordisk (NVO - Free Report) closed the most recent trading day at $141.08, moving -0.01% from the previous trading session. This change lagged the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the drugmaker had gained 5.3% over the past month. This has outpaced the Medical sector's gain of 0.84% and the S&P 500's gain of 4.06% in that time.
Wall Street will be looking for positivity from Novo Nordisk as it approaches its next earnings report date. On that day, Novo Nordisk is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 9.59%. Our most recent consensus estimate is calling for quarterly revenue of $6.74 billion, up 14.27% from the year-ago period.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 1.34% higher within the past month. Novo Nordisk is currently a Zacks Rank #2 (Buy).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 34.04. Its industry sports an average Forward P/E of 14.63, so we one might conclude that Novo Nordisk is trading at a premium comparatively.
Investors should also note that NVO has a PEG ratio of 1.8 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Novo Nordisk (NVO) Stock Sinks As Market Gains: What You Should Know
Novo Nordisk (NVO - Free Report) closed the most recent trading day at $141.08, moving -0.01% from the previous trading session. This change lagged the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the drugmaker had gained 5.3% over the past month. This has outpaced the Medical sector's gain of 0.84% and the S&P 500's gain of 4.06% in that time.
Wall Street will be looking for positivity from Novo Nordisk as it approaches its next earnings report date. On that day, Novo Nordisk is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 9.59%. Our most recent consensus estimate is calling for quarterly revenue of $6.74 billion, up 14.27% from the year-ago period.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 1.34% higher within the past month. Novo Nordisk is currently a Zacks Rank #2 (Buy).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 34.04. Its industry sports an average Forward P/E of 14.63, so we one might conclude that Novo Nordisk is trading at a premium comparatively.
Investors should also note that NVO has a PEG ratio of 1.8 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.