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Novo Nordisk (NVO) Ascends While Market Falls: Some Facts to Note
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In the latest close session, Novo Nordisk (NVO - Free Report) was up +1.73% at $48.77. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Coming into today, shares of the drugmaker had gained 11.7% in the past month. In that same time, the Medical sector gained 6.47%, while the S&P 500 lost 1.21%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company is forecasted to report an EPS of $0.82, showcasing a 15.46% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $11.35 billion, indicating a 2.89% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $45.3 billion, which would represent changes of -13.89% and -3.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.36% fall in the Zacks Consensus EPS estimate. Novo Nordisk is currently a Zacks Rank #3 (Hold).
In the context of valuation, Novo Nordisk is at present trading with a Forward P/E ratio of 14.04. This valuation marks a discount compared to its industry average Forward P/E of 15.61.
One should further note that NVO currently holds a PEG ratio of 4.33. 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 currently had an average PEG ratio of 2.62 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 93, which puts it in the top 38% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Novo Nordisk (NVO) Ascends While Market Falls: Some Facts to Note
In the latest close session, Novo Nordisk (NVO - Free Report) was up +1.73% at $48.77. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Coming into today, shares of the drugmaker had gained 11.7% in the past month. In that same time, the Medical sector gained 6.47%, while the S&P 500 lost 1.21%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company is forecasted to report an EPS of $0.82, showcasing a 15.46% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $11.35 billion, indicating a 2.89% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $45.3 billion, which would represent changes of -13.89% and -3.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.36% fall in the Zacks Consensus EPS estimate. Novo Nordisk is currently a Zacks Rank #3 (Hold).
In the context of valuation, Novo Nordisk is at present trading with a Forward P/E ratio of 14.04. This valuation marks a discount compared to its industry average Forward P/E of 15.61.
One should further note that NVO currently holds a PEG ratio of 4.33. 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 currently had an average PEG ratio of 2.62 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 93, which puts it in the top 38% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.