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Novo Nordisk (NVO) Gains But Lags Market: What You Should Know
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Novo Nordisk (NVO - Free Report) closed at $159.60 in the latest trading session, marking a +0.29% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Prior to today's trading, shares of the drugmaker had gained 9.83% over the past month. This has outpaced the Medical sector's gain of 3.28% and the S&P 500's gain of 3.71% in that time.
Investors will be hoping for strength from Novo Nordisk as it approaches its next earnings release. In that report, analysts expect Novo Nordisk to post earnings of $0.81 per share. This would mark a year-over-year decline of 13.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.7 billion, up 5.71% from the year-ago period.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $4.48 per share and revenue of $29.9 billion. These results would represent year-over-year changes of +29.48% and +19.5%, respectively.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.28% higher. Novo Nordisk is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Novo Nordisk currently has a Forward P/E ratio of 35.49. This valuation marks a premium compared to its industry's average Forward P/E of 14.3.
It is also worth noting that NVO currently has a PEG ratio of 1.66. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.67 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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) Gains But Lags Market: What You Should Know
Novo Nordisk (NVO - Free Report) closed at $159.60 in the latest trading session, marking a +0.29% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Prior to today's trading, shares of the drugmaker had gained 9.83% over the past month. This has outpaced the Medical sector's gain of 3.28% and the S&P 500's gain of 3.71% in that time.
Investors will be hoping for strength from Novo Nordisk as it approaches its next earnings release. In that report, analysts expect Novo Nordisk to post earnings of $0.81 per share. This would mark a year-over-year decline of 13.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.7 billion, up 5.71% from the year-ago period.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $4.48 per share and revenue of $29.9 billion. These results would represent year-over-year changes of +29.48% and +19.5%, respectively.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.28% higher. Novo Nordisk is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Novo Nordisk currently has a Forward P/E ratio of 35.49. This valuation marks a premium compared to its industry's average Forward P/E of 14.3.
It is also worth noting that NVO currently has a PEG ratio of 1.66. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.67 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.