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Novo Nordisk (NVO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, Novo Nordisk (NVO - Free Report) closed at $38.52, marking a -1.61% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.89%.
Heading into today, shares of the drugmaker had gained 7.76% over the past month, outpacing the Medical sector's gain of 0.47% and lagging the S&P 500's gain of 9.71%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. On that day, Novo Nordisk is projected to report earnings of $0.87 per share, which would represent a year-over-year decline of 5.43%. Alongside, our most recent consensus estimate is anticipating revenue of $11.13 billion, indicating a 1.08% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.34 per share and a revenue of $45.22 billion, signifying shifts of -15.66% and -3.32%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 11.74. For comparison, its industry has an average Forward P/E of 14.03, which means Novo Nordisk is trading at a discount to the group.
It's also important to note that NVO currently trades at a PEG ratio of 9.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 32% of all 250+ industries.
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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Novo Nordisk (NVO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Novo Nordisk (NVO - Free Report) closed at $38.52, marking a -1.61% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.89%.
Heading into today, shares of the drugmaker had gained 7.76% over the past month, outpacing the Medical sector's gain of 0.47% and lagging the S&P 500's gain of 9.71%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. On that day, Novo Nordisk is projected to report earnings of $0.87 per share, which would represent a year-over-year decline of 5.43%. Alongside, our most recent consensus estimate is anticipating revenue of $11.13 billion, indicating a 1.08% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.34 per share and a revenue of $45.22 billion, signifying shifts of -15.66% and -3.32%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 11.74. For comparison, its industry has an average Forward P/E of 14.03, which means Novo Nordisk is trading at a discount to the group.
It's also important to note that NVO currently trades at a PEG ratio of 9.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 32% of all 250+ industries.
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.