Novartis (NVS) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Novartis (NVS) reached $108.03, with a -0.21% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.88% for the day. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 1.35%.
Shares of the drugmaker have appreciated by 11.45% over the course of the past month, outperforming the Medical sector's gain of 3.45% and the S&P 500's gain of 0.64%.
The upcoming earnings release of Novartis will be of great interest to investors. The company's earnings report is expected on January 31, 2024. The company's upcoming EPS is projected at $1.66, signifying a 9.93% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $11.67 billion, indicating an 8.02% downward movement from the same quarter last year.
Any recent changes to analyst estimates for Novartis should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.44% upward. Right now, Novartis possesses a Zacks Rank of #2 (Buy).
Investors should also note Novartis's current valuation metrics, including its Forward P/E ratio of 14.94. For comparison, its industry has an average Forward P/E of 14.48, which means Novartis is trading at a premium to the group.
Meanwhile, NVS's PEG ratio is currently 1.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Novartis AG (NVS) : Free Stock Analysis Report
