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In the latest trading session, Novo Nordisk (NVO) closed at $83.34, marking a -1.99% move from the previous day. This move lagged the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq depreciated by 1.89%.
Shares of the drugmaker witnessed a loss of 23.45% over the previous month, trailing the performance of the Medical sector with its loss of 6.22% and the S&P 500's loss of 1.7%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.85, signifying a 19.72% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $11.34 billion, up 19.23% from the prior-year quarter.
Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.06% decrease. Currently, Novo Nordisk is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Novo Nordisk is at present trading with a Forward P/E ratio of 21.89. This signifies a premium in comparison to the average Forward P/E of 12.34 for its industry.
We can also see that NVO currently has a PEG ratio of 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.26 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 24% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.