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Novo Nordisk (NVO) Stock Moves -0.09%: What You Should Know

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Novo Nordisk (NVO - Free Report) closed the latest trading day at $97.43, indicating a -0.09% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 1.43%. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw a decrease of 2.43%.

Prior to today's trading, shares of the drugmaker had gained 6.24% over the past month. This has outpaced the Medical sector's loss of 3.82% and the S&P 500's loss of 1.55% in that time.

The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company's earnings report is expected on November 2, 2023. It is anticipated that the company will report an EPS of $0.60, marking a 39.53% rise compared to the same quarter of the previous year.

Investors might also notice recent changes to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 15.03% increase. Right now, Novo Nordisk possesses a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 44.5. This valuation marks a premium compared to its industry's average Forward P/E of 14.98.

Meanwhile, NVO's PEG ratio is currently 1.77. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.77.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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