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Novo Nordisk (NVO) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Novo Nordisk (NVO - Free Report) closed at $59.63, marking a +1.52% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.28%.

The drugmaker's shares have seen an increase of 4.63% over the last month, not keeping up with the Medical sector's gain of 4.67% and the S&P 500's gain of 4.83%.

The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company's earnings report is expected on November 5, 2025. In that report, analysts expect Novo Nordisk to post earnings of $0.95 per share. This would mark year-over-year growth of 5.56%. At the same time, our most recent consensus estimate is projecting a revenue of $12 billion, reflecting a 14.23% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.82 per share and a revenue of $48.89 billion, representing changes of +16.46% and +16.15%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% lower. At present, Novo Nordisk boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Novo Nordisk currently has a Forward P/E ratio of 15.39. For comparison, its industry has an average Forward P/E of 14.84, which means Novo Nordisk is trading at a premium to the group.

We can also see that NVO currently has a PEG ratio of 2.25. 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 the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.61.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.

To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.


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