Back to top

Image: Bigstock

Novo Nordisk (NVO) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

In the latest trading session, Novo Nordisk (NVO - Free Report) closed at $47.00, marking a -6.06% move from the previous day. This change lagged the S&P 500's 0.37% loss on the day. Elsewhere, the Dow saw a downswing of 0.74%, while the tech-heavy Nasdaq depreciated by 0.03%.

Shares of the drugmaker have depreciated by 28.34% over the course of the past month, underperforming the Medical sector's loss of 0.88%, and the S&P 500's gain of 2.68%.

The investment community will be closely monitoring the performance of Novo Nordisk in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. The company is predicted to post an EPS of $0.94, indicating a 44.62% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.88 billion, up 20.99% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.94 per share and a revenue of $50.41 billion, representing changes of +20.12% and +19.76%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, the Zacks Consensus EPS estimate has shifted 1.13% upward. Novo Nordisk is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 12.7 right now. This represents a discount compared to its industry average Forward P/E of 13.02.

It's also important to note that NVO currently trades at a PEG ratio of 0.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% of all 250+ industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Novo Nordisk A/S (NVO) - free report >>

Published in