In the latest close session, Novo Nordisk (NVO) was down 1.51% at $48.89. The stock's performance was behind the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq added 0.2%.
The drugmaker's stock has climbed by 17.66% in the past month, exceeding the Medical sector's gain of 7.8% and the S&P 500's gain of 1.64%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company is predicted to post an EPS of $0.82, indicating a 15.46% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.35 billion, down 2.89% from the year-ago period.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.38 per share and revenue of $45.3 billion. These results would represent year-over-year changes of -14.65% and -3.15%, respectively.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, there's been a 2.07% fall in the Zacks Consensus EPS estimate. Right now, Novo Nordisk possesses a Zacks Rank of #4 (Sell).
Looking at its valuation, Novo Nordisk is holding a Forward P/E ratio of 14.67. Its industry sports an average Forward P/E of 16, so one might conclude that Novo Nordisk is trading at a discount comparatively.
It is also worth noting that NVO currently has a PEG ratio of 4.53. 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 2.7 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 20% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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).