Novo Nordisk (NVO) closed at $50.96 in the latest trading session, marking a +2.6% move from the prior day. The stock’s change was more than the S&P 500’s daily gain of 0.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.22%.
The stock of drugmaker has risen by 2.75% in the past month, leading the Medical sector’s loss of 0.43% and the S&P 500’s gain of 1.7%.
Market participants will be closely following the financial results of Novo Nordisk in its upcoming release. The company’s upcoming EPS is projected at $0.82, signifying a 15.46% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.27 billion, down 3.58% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.39 per share and a revenue of $44.61 billion, representing changes of -14.39% and -4.63%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications 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 business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.96% lower. At present, Novo Nordisk boasts a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 14.67. This valuation marks a discount compared to its industry average Forward P/E of 17.68.
Meanwhile, NVO’s PEG ratio is currently 4.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 2.69 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 7% of all 250+ industries.