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Why Novo Nordisk (NVO) Dipped More Than Broader Market Today
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In the latest trading session, Novo Nordisk (NVO - Free Report) closed at $38.06, marking a -1.35% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
The stock of drugmaker has fallen by 11.21% in the past month, lagging the Medical sector's gain of 1.06% and the S&P 500's gain of 2.05%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. On that day, Novo Nordisk is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 20.59%. Meanwhile, our latest consensus estimate is calling for revenue of $11.39 billion, down 3.03% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.42 per share and a revenue of $45.57 billion, signifying shifts of -13.64% and -2.58%, 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.17% lower within the past month. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Novo Nordisk currently has a Forward P/E ratio of 11.29. Its industry sports an average Forward P/E of 16.15, so one might conclude that Novo Nordisk is trading at a discount comparatively.
One should further note that NVO currently holds a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.92 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Novo Nordisk (NVO) Dipped More Than Broader Market Today
In the latest trading session, Novo Nordisk (NVO - Free Report) closed at $38.06, marking a -1.35% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
The stock of drugmaker has fallen by 11.21% in the past month, lagging the Medical sector's gain of 1.06% and the S&P 500's gain of 2.05%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. On that day, Novo Nordisk is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 20.59%. Meanwhile, our latest consensus estimate is calling for revenue of $11.39 billion, down 3.03% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.42 per share and a revenue of $45.57 billion, signifying shifts of -13.64% and -2.58%, 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.17% lower within the past month. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Novo Nordisk currently has a Forward P/E ratio of 11.29. Its industry sports an average Forward P/E of 16.15, so one might conclude that Novo Nordisk is trading at a discount comparatively.
One should further note that NVO currently holds a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.92 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.