Novartis (NVS) Declines More Than Market: Some Information for Investors
In the latest trading session, Novartis (NVS) closed at $95.73, marking a -0.52% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.31%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.27%.
The the stock of drugmaker has fallen by 7.38% in the past month, lagging the Medical sector's loss of 0.57% and the S&P 500's gain of 3.05%.
Investors will be eagerly watching for the performance of Novartis in its upcoming earnings disclosure. On that day, Novartis is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 0.58%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.41 billion, indicating a 11.9% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.17 per share and a revenue of $47.32 billion, signifying shifts of +3.91% and -4.95%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novartis. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Novartis is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Novartis is at present trading with a Forward P/E ratio of 13.42. For comparison, its industry has an average Forward P/E of 14.44, which means Novartis is trading at a discount to the group.
We can also see that NVS currently has a PEG ratio of 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.73 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Novartis AG (NVS) : Free Stock Analysis Report
