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Novartis (NVS) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Novartis (NVS - Free Report) closed at $95.79, marking a -1.14% move from the previous day. This change lagged the S&P 500's 1.11% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.
The drugmaker's stock has dropped by 3.04% in the past month, falling short of the Medical sector's loss of 2.46% and the S&P 500's gain of 0.48%.
Investors will be eagerly watching for the performance of Novartis in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.72, marking a 0.58% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.41 billion, down 11.9% from the year-ago period.
NVS's full-year Zacks Consensus Estimates are calling for earnings of $7.17 per share and revenue of $47.32 billion. These results would represent year-over-year changes of +3.91% and -4.95%, respectively.
Investors might also notice recent changes to analyst estimates for Novartis. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 0.06% fall in the Zacks Consensus EPS estimate. Novartis is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Novartis's current valuation metrics, including its Forward P/E ratio of 13.51. For comparison, its industry has an average Forward P/E of 14.32, which means Novartis is trading at a discount to the group.
It is also worth noting that NVS currently has a PEG ratio of 1.51. 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. 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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Novartis (NVS) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Novartis (NVS - Free Report) closed at $95.79, marking a -1.14% move from the previous day. This change lagged the S&P 500's 1.11% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.
The drugmaker's stock has dropped by 3.04% in the past month, falling short of the Medical sector's loss of 2.46% and the S&P 500's gain of 0.48%.
Investors will be eagerly watching for the performance of Novartis in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.72, marking a 0.58% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.41 billion, down 11.9% from the year-ago period.
NVS's full-year Zacks Consensus Estimates are calling for earnings of $7.17 per share and revenue of $47.32 billion. These results would represent year-over-year changes of +3.91% and -4.95%, respectively.
Investors might also notice recent changes to analyst estimates for Novartis. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 0.06% fall in the Zacks Consensus EPS estimate. Novartis is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Novartis's current valuation metrics, including its Forward P/E ratio of 13.51. For comparison, its industry has an average Forward P/E of 14.32, which means Novartis is trading at a discount to the group.
It is also worth noting that NVS currently has a PEG ratio of 1.51. 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. 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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.