In This Article:
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Novartis are trading at a forward earnings multiple of 12.7X, as well as a PEG Ratio of 1.7, a Price/Cash Flow ratio of 10.1X, and a Price/Sales ratio of 4.3X.
A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for NVS, while the Zacks Consensus Estimate has increased $0.08 to $8.50 per share. NVS also holds an average earnings surprise of 6.3%.
Investors should take the time to consider NVS for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Novartis AG (NVS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).