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Novo Nordisk (NVO) Gains As Market Dips: What You Should Know

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The most recent trading session ended with Novo Nordisk (NVO - Free Report) standing at $124.93, reflecting a +0.06% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.95%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, lost 0.84%.

Prior to today's trading, shares of the drugmaker had lost 7.59% over the past month. This has lagged the Medical sector's loss of 3.76% and the S&P 500's gain of 1.78% in that time.

The investment community will be closely monitoring the performance of Novo Nordisk in its forthcoming earnings report. On that day, Novo Nordisk is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 20.31%. At the same time, our most recent consensus estimate is projecting a revenue of $9.48 billion, reflecting a 23.23% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.32 per share and revenue of $41.9 billion. These totals would mark changes of +22.96% and +24.3%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Novo Nordisk. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.04% downward. Novo Nordisk currently has a Zacks Rank of #3 (Hold).

Investors should also note Novo Nordisk's current valuation metrics, including its Forward P/E ratio of 37.57. This valuation marks a premium compared to its industry's average Forward P/E of 14.3.

We can additionally observe that NVO currently boasts a PEG ratio of 2.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.71.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 211, putting 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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