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Novo Nordisk (NVO) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest close session, Novo Nordisk (NVO - Free Report) was down 2.02% at $41.67. The stock's performance was behind the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 1.21%, and the tech-heavy Nasdaq lost 0.01%.
Shares of the drugmaker have depreciated by 6.96% over the course of the past month, underperforming the Medical sector's loss of 0.29%, and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.8, marking a 21.57% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $11.49 billion, showing a 2.18% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.53 per share and a revenue of $46.23 billion, signifying shifts of -10.86% and -1.16%, respectively, from the last year.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 moved 3.45% higher. 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 12.05. This signifies a discount in comparison to the average Forward P/E of 15.67 for its industry.
Also, we should mention that NVO has a PEG ratio of 1.4. 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. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.98.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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Novo Nordisk (NVO) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest close session, Novo Nordisk (NVO - Free Report) was down 2.02% at $41.67. The stock's performance was behind the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 1.21%, and the tech-heavy Nasdaq lost 0.01%.
Shares of the drugmaker have depreciated by 6.96% over the course of the past month, underperforming the Medical sector's loss of 0.29%, and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.8, marking a 21.57% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $11.49 billion, showing a 2.18% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.53 per share and a revenue of $46.23 billion, signifying shifts of -10.86% and -1.16%, respectively, from the last year.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 moved 3.45% higher. 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 12.05. This signifies a discount in comparison to the average Forward P/E of 15.67 for its industry.
Also, we should mention that NVO has a PEG ratio of 1.4. 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. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.98.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.