In the latest trading session, Novo Nordisk (NVO) closed at $38.26, marking a +1.95% move from the previous day. This change outpaced the S&P 500's 0.22% loss on the day. Elsewhere, the Dow saw a downswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.22%.
Heading into today, shares of the drugmaker had lost 16.9% over the past month, lagging the Medical sector's loss of 4.73% and the S&P 500's gain of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. The company is expected to report EPS of $0.8, down 21.57% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $11.41 billion, indicating a 2.79% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.53 per share and a revenue of $46.1 billion, indicating changes of -10.86% and -1.46%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Novo Nordisk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.41% higher. As of now, Novo Nordisk holds a Zacks Rank of #3 (Hold).
Digging into valuation, Novo Nordisk currently has a Forward P/E ratio of 10.62. This indicates a discount in contrast to its industry's Forward P/E of 15.82.
Also, we should mention that NVO has a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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).