In the latest trading session, Novo Nordisk (NVO – Free Report) closed at $78.79, marking a -0.27% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.33%.
The drugmaker’s shares have seen a decrease of 5.28% over the last month, not keeping up with the Medical sector’s loss of 0.63% and outstripping the S&P 500’s loss of 7.48%.
Market participants will be closely following the financial results of Novo Nordisk in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.94, reflecting a 13.25% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.29 billion, up 18.67% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.93 per share and a revenue of $49.89 billion, demonstrating changes of +19.82% and +18.52%, respectively, from the preceding 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. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there’s been a 2.39% rise in the Zacks Consensus EPS estimate. Novo Nordisk presently features a Zacks Rank of #2 (Buy).
Investors should also note Novo Nordisk’s current valuation metrics, including its Forward P/E ratio of 20.08. This represents a premium compared to its industry’s average Forward P/E of 14.7.
Meanwhile, NVO’s PEG ratio is currently 0.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.34 based on yesterday’s closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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