We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novo Nordisk (NVO) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Novo Nordisk (NVO - Free Report) closed the most recent trading day at $160.25, moving -0.43% from the previous trading session. This change lagged the S&P 500's 0.71% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq gained 4.62%.
Heading into today, shares of the drugmaker had lost 0.21% over the past month, outpacing the Medical sector's loss of 1.53% and lagging the S&P 500's gain of 2.65% in that time.
Novo Nordisk will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.33, up 58.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.44 billion, up 42.72% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.07 per share and revenue of $34.46 billion. These totals would mark changes of +46.53% and +37.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.7% higher. Novo Nordisk is currently a Zacks Rank #3 (Hold).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 31.76. Its industry sports an average Forward P/E of 14.73, so we one might conclude that Novo Nordisk is trading at a premium comparatively.
It is also worth noting that NVO currently has a PEG ratio of 1.45. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.64 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 168, which puts it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Novo Nordisk (NVO) Stock Sinks As Market Gains: What You Should Know
Novo Nordisk (NVO - Free Report) closed the most recent trading day at $160.25, moving -0.43% from the previous trading session. This change lagged the S&P 500's 0.71% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq gained 4.62%.
Heading into today, shares of the drugmaker had lost 0.21% over the past month, outpacing the Medical sector's loss of 1.53% and lagging the S&P 500's gain of 2.65% in that time.
Novo Nordisk will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.33, up 58.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.44 billion, up 42.72% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.07 per share and revenue of $34.46 billion. These totals would mark changes of +46.53% and +37.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.7% higher. Novo Nordisk is currently a Zacks Rank #3 (Hold).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 31.76. Its industry sports an average Forward P/E of 14.73, so we one might conclude that Novo Nordisk is trading at a premium comparatively.
It is also worth noting that NVO currently has a PEG ratio of 1.45. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.64 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 168, which puts it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.