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Here's Why Novo Nordisk (NVO) Fell More Than Broader Market
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Novo Nordisk (NVO - Free Report) closed at $127.55 in the latest trading session, marking a -0.66% move from the prior day. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.11%.
Heading into today, shares of the drugmaker had gained 3.36% over the past month, outpacing the Medical sector's gain of 2.21% and the S&P 500's gain of 3.32% in that time.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. The company is expected to report EPS of $0.79, up 23.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.48 billion, up 23.23% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.35 per share and a revenue of $41.9 billion, indicating changes of +24.07% and +24.3%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novo Nordisk. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has shifted 1% upward. At present, Novo Nordisk boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 38.31. This denotes a premium relative to the industry's average Forward P/E of 14.85.
It is also worth noting that NVO currently has a PEG ratio of 2.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.76.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Novo Nordisk (NVO) Fell More Than Broader Market
Novo Nordisk (NVO - Free Report) closed at $127.55 in the latest trading session, marking a -0.66% move from the prior day. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.11%.
Heading into today, shares of the drugmaker had gained 3.36% over the past month, outpacing the Medical sector's gain of 2.21% and the S&P 500's gain of 3.32% in that time.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. The company is expected to report EPS of $0.79, up 23.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.48 billion, up 23.23% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.35 per share and a revenue of $41.9 billion, indicating changes of +24.07% and +24.3%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novo Nordisk. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has shifted 1% upward. At present, Novo Nordisk boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 38.31. This denotes a premium relative to the industry's average Forward P/E of 14.85.
It is also worth noting that NVO currently has a PEG ratio of 2.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.76.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.