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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Novartis (NVS)
Switzerland-based Novartis has one of the strongest and broadest portfolios of varied drugs that has enabled it to maintain its dominant position as a top pharma company over the years. It continues to build depth in core therapeutic areas like cardiovascular, renal and metabolic, immunology, neuroscience and oncology in geographies like the United States, China, Germany and Japan. Novartis’ efforts to strengthen its wide portfolio by developing breakthrough treatments have made it even more formidable in this space. Kesimpta, Pluvicto, Scemblix, Kisqali, Leqvio and Fabhalta should fuel growth.
NVS sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Large Cap Pharmaceuticals industry's P/E of 12.8X, shares of Novartis are trading at a forward P/E of 12.4X. NVS also has a PEG Ratio of 1.6, a Price/Cash Flow ratio of 10.1X, and a Price/Sales ratio of 4.4X.
Many value investors pay close attention to a company's earnings as well. For NVS, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.27 to $8.74 per share for 2025. Per share NVS boasts an average earnings surprise of 7.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding NVS to their portfolios.
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Novartis AG (NVS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).