Novartis (NVS) Stock Dips While Market Gains: Key Facts
Novartis (NVS) closed the latest trading day at $99.77, indicating a -1.58% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.12%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.
Coming into today, shares of the drugmaker had gained 0.84% in the past month. In that same time, the Medical sector gained 2.49%, while the S&P 500 gained 2.06%.
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 $1.73 per share, which would represent year-over-year growth of 1.17%. At the same time, our most recent consensus estimate is projecting a revenue of $11.43 billion, reflecting a 11.75% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.18 per share and a revenue of $47.44 billion, signifying shifts of +4.06% and -4.69%, respectively, from the last year.
Any recent changes to analyst estimates for Novartis should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.81% downward. As of now, Novartis holds a Zacks Rank of #3 (Hold).
Investors should also note Novartis's current valuation metrics, including its Forward P/E ratio of 14.13. This indicates a discount in contrast to its industry's Forward P/E of 14.31.
Investors should also note that NVS has a PEG ratio of 1.57 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.7 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 32% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Novartis AG (NVS) : Free Stock Analysis Report
