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Novo Nordisk (NVO) Stock Sinks As Market Gains: Here's Why
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Novo Nordisk (NVO - Free Report) closed at $38.42 in the latest trading session, marking a -1.06% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq added 1.11%.
Shares of the drugmaker have depreciated by 10.2% over the course of the past month, underperforming the Medical sector's gain of 1.97%, and the S&P 500's gain of 1.46%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. The company's upcoming EPS is projected at $0.81, signifying a 20.59% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $11.39 billion, down 3.03% from the prior-year quarter.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $45.57 billion. These results would represent year-over-year changes of -13.64% and -2.58%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.17% decrease. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 11.36. For comparison, its industry has an average Forward P/E of 16.91, which means Novo Nordisk is trading at a discount to the group.
We can additionally observe that NVO currently boasts a PEG ratio of 1.32. 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 2.01 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 15% of all industries, numbering over 250.
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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Novo Nordisk (NVO) Stock Sinks As Market Gains: Here's Why
Novo Nordisk (NVO - Free Report) closed at $38.42 in the latest trading session, marking a -1.06% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq added 1.11%.
Shares of the drugmaker have depreciated by 10.2% over the course of the past month, underperforming the Medical sector's gain of 1.97%, and the S&P 500's gain of 1.46%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. The company's upcoming EPS is projected at $0.81, signifying a 20.59% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $11.39 billion, down 3.03% from the prior-year quarter.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $45.57 billion. These results would represent year-over-year changes of -13.64% and -2.58%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.17% decrease. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 11.36. For comparison, its industry has an average Forward P/E of 16.91, which means Novo Nordisk is trading at a discount to the group.
We can additionally observe that NVO currently boasts a PEG ratio of 1.32. 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 2.01 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 15% of all industries, numbering over 250.
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.