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Novo Nordisk (NVO) Dips More Than Broader Markets: What You Should Know
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Novo Nordisk (NVO - Free Report) closed the most recent trading day at $140.54, moving -0.53% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the drugmaker had gained 1.25% over the past month, outpacing the Medical sector's loss of 5.41% and the S&P 500's loss of 5.39% in that time.
Wall Street will be looking for positivity from Novo Nordisk as it approaches its next earnings report date. The company is expected to report EPS of $1.04, up 10.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.7 billion, up 5.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.43 per share and revenue of $29.81 billion. These totals would mark changes of +28.03% and +19.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 5.42% higher. Novo Nordisk is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 31.91. This valuation marks a premium compared to its industry's average Forward P/E of 13.65.
Investors should also note that NVO has a PEG ratio of 1.49 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVO's industry had an average PEG ratio of 1.57 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.
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Novo Nordisk (NVO) Dips More Than Broader Markets: What You Should Know
Novo Nordisk (NVO - Free Report) closed the most recent trading day at $140.54, moving -0.53% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the drugmaker had gained 1.25% over the past month, outpacing the Medical sector's loss of 5.41% and the S&P 500's loss of 5.39% in that time.
Wall Street will be looking for positivity from Novo Nordisk as it approaches its next earnings report date. The company is expected to report EPS of $1.04, up 10.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.7 billion, up 5.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.43 per share and revenue of $29.81 billion. These totals would mark changes of +28.03% and +19.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 5.42% higher. Novo Nordisk is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 31.91. This valuation marks a premium compared to its industry's average Forward P/E of 13.65.
Investors should also note that NVO has a PEG ratio of 1.49 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVO's industry had an average PEG ratio of 1.57 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.