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Novartis (NVS) Declines More Than Market: Some Information for Investors
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The most recent trading session ended with Novartis (NVS - Free Report) standing at $94.41, reflecting a -1.52% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.72%. Elsewhere, the Dow saw a downswing of 1%, while the tech-heavy Nasdaq depreciated by 0.95%.
Heading into today, shares of the drugmaker had lost 5.98% over the past month, lagging the Medical sector's loss of 0.03% and the S&P 500's gain of 2.16% in that time.
The investment community will be paying close attention to the earnings performance of Novartis in its upcoming release. The company is expected to report EPS of $1.72, up 0.58% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $11.41 billion, indicating a 11.9% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.17 per share and a revenue of $47.32 billion, indicating changes of +3.91% and -4.95%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Novartis. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Novartis is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Novartis is currently exchanging hands at a Forward P/E ratio of 13.37. This denotes a discount relative to the industry's average Forward P/E of 14.81.
It's also important to note that NVS currently trades at a PEG ratio of 1.49. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.73.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 218, this industry ranks in the bottom 14% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Novartis (NVS) Declines More Than Market: Some Information for Investors
The most recent trading session ended with Novartis (NVS - Free Report) standing at $94.41, reflecting a -1.52% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.72%. Elsewhere, the Dow saw a downswing of 1%, while the tech-heavy Nasdaq depreciated by 0.95%.
Heading into today, shares of the drugmaker had lost 5.98% over the past month, lagging the Medical sector's loss of 0.03% and the S&P 500's gain of 2.16% in that time.
The investment community will be paying close attention to the earnings performance of Novartis in its upcoming release. The company is expected to report EPS of $1.72, up 0.58% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $11.41 billion, indicating a 11.9% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.17 per share and a revenue of $47.32 billion, indicating changes of +3.91% and -4.95%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Novartis. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Novartis is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Novartis is currently exchanging hands at a Forward P/E ratio of 13.37. This denotes a discount relative to the industry's average Forward P/E of 14.81.
It's also important to note that NVS currently trades at a PEG ratio of 1.49. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.73.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 218, this industry ranks in the bottom 14% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.