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Novo Nordisk (NVO) Gains As Market Dips: What You Should Know
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Novo Nordisk (NVO - Free Report) closed at $165.37 in the latest trading session, marking a +0.21% move from the prior day. This change outpaced the S&P 500's 0.6% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 2.87%.
Coming into today, shares of the drugmaker had gained 12.5% in the past month. In that same time, the Medical sector gained 6.18%, while the S&P 500 gained 6.22%.
Investors will be hoping for strength from Novo Nordisk as it approaches its next earnings release. On that day, Novo Nordisk is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 19.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.7 billion, up 5.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.52 per share and revenue of $29.9 billion. These totals would mark changes of +30.64% and +19.5%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2% higher. Novo Nordisk is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 36.54 right now. For comparison, its industry has an average Forward P/E of 14.84, which means Novo Nordisk is trading at a premium to the group.
Investors should also note that NVO has a PEG ratio of 1.76 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Novo Nordisk (NVO) Gains As Market Dips: What You Should Know
Novo Nordisk (NVO - Free Report) closed at $165.37 in the latest trading session, marking a +0.21% move from the prior day. This change outpaced the S&P 500's 0.6% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 2.87%.
Coming into today, shares of the drugmaker had gained 12.5% in the past month. In that same time, the Medical sector gained 6.18%, while the S&P 500 gained 6.22%.
Investors will be hoping for strength from Novo Nordisk as it approaches its next earnings release. On that day, Novo Nordisk is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 19.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.7 billion, up 5.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.52 per share and revenue of $29.9 billion. These totals would mark changes of +30.64% and +19.5%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2% higher. Novo Nordisk is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 36.54 right now. For comparison, its industry has an average Forward P/E of 14.84, which means Novo Nordisk is trading at a premium to the group.
Investors should also note that NVO has a PEG ratio of 1.76 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.