In the latest close session, Novo Nordisk (NVO) was down 1% at $40.52. This change lagged the S&P 500's 1.2% gain on the day. Meanwhile, the Dow experienced a rise of 1.79%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Prior to today's trading, shares of the drugmaker had gained 10.38% outpaced the Medical sector's loss of 2.77% and the S&P 500's gain of 5.15%.
The investment community will be closely monitoring the performance of Novo Nordisk in its forthcoming earnings report. The company is expected to report EPS of $0.87, down 5.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.13 billion, up 1.08% from the year-ago period.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.37 per share and revenue of $45.22 billion. These results would represent year-over-year changes of -14.9% and -3.32%, respectively.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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, the Zacks Consensus EPS estimate has shifted 0.46% downward. Novo Nordisk is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 12.16. This expresses a discount compared to the average Forward P/E of 14.57 of its industry.
We can additionally observe that NVO currently boasts a PEG ratio of 9.65. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Novo Nordisk A/S (NVO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).