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Novo Nordisk (NVO) Outpaces Stock Market Gains: What You Should Know
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Novo Nordisk (NVO - Free Report) closed at $43.93 in the latest trading session, marking a +2.62% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 2.54%.
The drugmaker's stock has dropped by 9.07% in the past month, falling short of the Medical sector's gain of 3.73% and the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. On that day, Novo Nordisk is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 14.43%. In the meantime, our current consensus estimate forecasts the revenue to be $11.35 billion, indicating a 2.89% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.45 per share and revenue of $45.75 billion. These totals would mark changes of -12.88% and -2.2%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% lower. Currently, Novo Nordisk is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 12.41. This valuation marks a discount compared to its industry average Forward P/E of 15.3.
Also, we should mention that NVO has a PEG ratio of 3.83. 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. NVO's industry had an average PEG ratio of 2.61 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Novo Nordisk (NVO) Outpaces Stock Market Gains: What You Should Know
Novo Nordisk (NVO - Free Report) closed at $43.93 in the latest trading session, marking a +2.62% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 2.54%.
The drugmaker's stock has dropped by 9.07% in the past month, falling short of the Medical sector's gain of 3.73% and the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. On that day, Novo Nordisk is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 14.43%. In the meantime, our current consensus estimate forecasts the revenue to be $11.35 billion, indicating a 2.89% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.45 per share and revenue of $45.75 billion. These totals would mark changes of -12.88% and -2.2%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% lower. Currently, Novo Nordisk is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 12.41. This valuation marks a discount compared to its industry average Forward P/E of 15.3.
Also, we should mention that NVO has a PEG ratio of 3.83. 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. NVO's industry had an average PEG ratio of 2.61 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.