Back to top

Image: Bigstock

Novo Nordisk (NVO) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Novo Nordisk (NVO - Free Report) closed the most recent trading day at $91.80, moving +0.95% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the drugmaker had lost 3.92% in the past month. In that same time, the Medical sector lost 4.56%, while the S&P 500 lost 4.45%.

Novo Nordisk will be looking to display strength as it nears its next earnings release. In that report, analysts expect Novo Nordisk to post earnings of $0.44 per share. This would mark year-over-year growth of 2.33%. Meanwhile, our latest consensus estimate is calling for revenue of $8.02 billion, up 29.99% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.91 per share and revenue of $32.03 billion. These totals would mark changes of +10.4% and +28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Novo Nordisk. 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.

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.

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 26.78% lower. Novo Nordisk currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 47.74 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.73.

We can also see that NVO currently has a PEG ratio of 1.96. 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. NVO's industry had an average PEG ratio of 1.96 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 213, which puts it in the bottom 16% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Novo Nordisk A/S (NVO) - free report >>

Published in