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) Advances While Market Declines: Some Information for Investors
Read MoreHide Full Article
Novo Nordisk (NVO - Free Report) closed the most recent trading day at $103.62, moving +1.48% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.8%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.18%.
Coming into today, shares of the drugmaker had gained 2.49% in the past month. In that same time, the Medical sector gained 5.8%, while the S&P 500 gained 3.4%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. On that day, Novo Nordisk is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 54.76%. Meanwhile, our latest consensus estimate is calling for revenue of $8.78 billion, up 33% from the prior-year quarter.
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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.53% rise in the Zacks Consensus EPS estimate. Right now, Novo Nordisk possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Novo Nordisk is presently trading at a Forward P/E ratio of 32.5. This valuation marks a premium compared to its industry's average Forward P/E of 14.03.
Investors should also note that NVO has a PEG ratio of 1.18 right now. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.9.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 36% of over 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) Advances While Market Declines: Some Information for Investors
Novo Nordisk (NVO - Free Report) closed the most recent trading day at $103.62, moving +1.48% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.8%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.18%.
Coming into today, shares of the drugmaker had gained 2.49% in the past month. In that same time, the Medical sector gained 5.8%, while the S&P 500 gained 3.4%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. On that day, Novo Nordisk is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 54.76%. Meanwhile, our latest consensus estimate is calling for revenue of $8.78 billion, up 33% from the prior-year quarter.
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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.53% rise in the Zacks Consensus EPS estimate. Right now, Novo Nordisk possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Novo Nordisk is presently trading at a Forward P/E ratio of 32.5. This valuation marks a premium compared to its industry's average Forward P/E of 14.03.
Investors should also note that NVO has a PEG ratio of 1.18 right now. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.9.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 36% of over 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.