Novo Nordisk (NVO) Rises Yet Lags Behind Market: Some Facts Worth Knowing
Novo Nordisk (NVO) closed the most recent trading day at $132.89, moving +0.39% from the previous trading session. This move lagged the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.82%.
Coming into today, shares of the drugmaker had gained 6.74% in the past month. In that same time, the Medical sector gained 0.91%, while the S&P 500 gained 1.76%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.79, showcasing a 23.44% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.48 billion, up 23.23% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.36 per share and a revenue of $41.91 billion, signifying shifts of +24.44% and +24.33%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Novo Nordisk. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.7% higher within the past month. Novo Nordisk is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 39.42 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.16.
We can also see that NVO currently has a PEG ratio of 2.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.72.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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Novo Nordisk A/S (NVO) : Free Stock Analysis Report
