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Novo Nordisk (NVO) Stock Sinks As Market Gains: What You Should Know
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Novo Nordisk (NVO - Free Report) closed at $69.72 in the latest trading session, marking a -5.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.
The stock of drugmaker has risen by 9.53% in the past month, leading the Medical sector's loss of 0.85% and the S&P 500's gain of 0.5%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 36.92% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.65 billion, reflecting a 18.64% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $49.25 billion, which would represent changes of +17.99% and +17%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.94% higher. Novo Nordisk is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 19.05. This expresses a premium compared to the average Forward P/E of 13.35 of its industry.
Meanwhile, NVO's PEG ratio is currently 1.32. 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. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.23 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% 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.
To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.
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Novo Nordisk (NVO) Stock Sinks As Market Gains: What You Should Know
Novo Nordisk (NVO - Free Report) closed at $69.72 in the latest trading session, marking a -5.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.
The stock of drugmaker has risen by 9.53% in the past month, leading the Medical sector's loss of 0.85% and the S&P 500's gain of 0.5%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 36.92% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.65 billion, reflecting a 18.64% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $49.25 billion, which would represent changes of +17.99% and +17%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.94% higher. Novo Nordisk is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 19.05. This expresses a premium compared to the average Forward P/E of 13.35 of its industry.
Meanwhile, NVO's PEG ratio is currently 1.32. 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. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.23 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% 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.
To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.