Novo Nordisk (NVO – Free Report) closed at $85.73 in the latest trading session, marking a -1.88% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.07% for the day. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 1.19%.
Shares of the drugmaker witnessed a loss of 18.19% over the previous month, trailing the performance of the Medical sector with its loss of 5.64% and the S&P 500’s loss of 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.88, reflecting a 23.94% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.67 billion, up 22.7% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and a revenue of $40.62 billion, representing changes of +19.63% and +20.49%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.21% higher. Novo Nordisk currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 27.05 right now. This represents a premium compared to its industry’s average Forward P/E of 13.88.
We can additionally observe that NVO currently boasts a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.46 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 141, which puts it in the bottom 44% 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.
To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.
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