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Novartis (NVS) Gains But Lags Market: What You Should Know
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Novartis (NVS - Free Report) closed at $93.06 in the latest trading session, marking a +0.02% move from the prior day. The stock lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.73%.
Prior to today's trading, shares of the drugmaker had gained 3.54% over the past month. This has lagged the Medical sector's gain of 5.73% and outpaced the S&P 500's gain of 1.94% in that time.
Investors will be hoping for strength from NVS as it approaches its next earnings release. On that day, NVS is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 1.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.95 billion, down 9.96% from the year-ago period.
NVS's full-year Zacks Consensus Estimates are calling for earnings of $5.22 per share and revenue of $47.79 billion. These results would represent year-over-year changes of +2.55% and -7.92%, respectively.
Investors might also notice recent changes to analyst estimates for NVS. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. NVS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NVS currently has a Forward P/E ratio of 17.83. Its industry sports an average Forward P/E of 15.16, so we one might conclude that NVS is trading at a premium comparatively.
It is also worth noting that NVS currently has a PEG ratio of 2.07. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.
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Novartis (NVS) Gains But Lags Market: What You Should Know
Novartis (NVS - Free Report) closed at $93.06 in the latest trading session, marking a +0.02% move from the prior day. The stock lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.73%.
Prior to today's trading, shares of the drugmaker had gained 3.54% over the past month. This has lagged the Medical sector's gain of 5.73% and outpaced the S&P 500's gain of 1.94% in that time.
Investors will be hoping for strength from NVS as it approaches its next earnings release. On that day, NVS is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 1.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.95 billion, down 9.96% from the year-ago period.
NVS's full-year Zacks Consensus Estimates are calling for earnings of $5.22 per share and revenue of $47.79 billion. These results would represent year-over-year changes of +2.55% and -7.92%, respectively.
Investors might also notice recent changes to analyst estimates for NVS. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. NVS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NVS currently has a Forward P/E ratio of 17.83. Its industry sports an average Forward P/E of 15.16, so we one might conclude that NVS is trading at a premium comparatively.
It is also worth noting that NVS currently has a PEG ratio of 2.07. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.