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Novo Nordisk (NVO) Falls More Steeply Than Broader Market: What Investors Need to Know
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Novo Nordisk (NVO - Free Report) closed at $38.17 in the latest trading session, marking a -3.12% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 1.13%.
The drugmaker's stock has dropped by 19.03% in the past month, falling short of the Medical sector's loss of 3.03% and the S&P 500's gain of 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.79, marking a 22.55% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.49 billion, down 2.18% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.52 per share and revenue of $46.23 billion, indicating changes of -11.11% and -1.16%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 3.11% higher. As of now, Novo Nordisk holds a Zacks Rank of #3 (Hold).
Looking at valuation, Novo Nordisk is presently trading at a Forward P/E ratio of 11.2. This represents a discount compared to its industry average Forward P/E of 15.93.
It is also worth noting that NVO currently has a PEG ratio of 1.3. 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 was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 43% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Novo Nordisk (NVO) Falls More Steeply Than Broader Market: What Investors Need to Know
Novo Nordisk (NVO - Free Report) closed at $38.17 in the latest trading session, marking a -3.12% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 1.13%.
The drugmaker's stock has dropped by 19.03% in the past month, falling short of the Medical sector's loss of 3.03% and the S&P 500's gain of 1.26%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.79, marking a 22.55% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.49 billion, down 2.18% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.52 per share and revenue of $46.23 billion, indicating changes of -11.11% and -1.16%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 3.11% higher. As of now, Novo Nordisk holds a Zacks Rank of #3 (Hold).
Looking at valuation, Novo Nordisk is presently trading at a Forward P/E ratio of 11.2. This represents a discount compared to its industry average Forward P/E of 15.93.
It is also worth noting that NVO currently has a PEG ratio of 1.3. 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 was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 43% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.