We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novartis (NVS) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Novartis (NVS - Free Report) closed at $101.86 in the latest trading session, marking a -0.46% move from the prior day. This change lagged the S&P 500's daily loss of 0.27%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the drugmaker had gained 1.84% over the past month. This has outpaced the Medical sector's loss of 3.01% and the S&P 500's loss of 2.86% in that time.
Wall Street will be looking for positivity from Novartis as it approaches its next earnings report date. This is expected to be October 24, 2023. On that day, Novartis is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 12.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.54 billion, up 7.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.92 per share and revenue of $53.86 billion, which would represent changes of +13.44% and +6.55%, respectively, from the prior year.
Any recent changes to analyst estimates for Novartis should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Novartis currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Novartis is currently trading at a Forward P/E ratio of 14.8. This represents a no noticeable deviation compared to its industry's average Forward P/E of 14.8.
We can also see that NVS currently has a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVS's industry had an average PEG ratio of 1.97 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 201, which puts it in the bottom 21% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Novartis (NVS) Dips More Than Broader Markets: What You Should Know
Novartis (NVS - Free Report) closed at $101.86 in the latest trading session, marking a -0.46% move from the prior day. This change lagged the S&P 500's daily loss of 0.27%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the drugmaker had gained 1.84% over the past month. This has outpaced the Medical sector's loss of 3.01% and the S&P 500's loss of 2.86% in that time.
Wall Street will be looking for positivity from Novartis as it approaches its next earnings report date. This is expected to be October 24, 2023. On that day, Novartis is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 12.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.54 billion, up 7.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.92 per share and revenue of $53.86 billion, which would represent changes of +13.44% and +6.55%, respectively, from the prior year.
Any recent changes to analyst estimates for Novartis should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Novartis currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Novartis is currently trading at a Forward P/E ratio of 14.8. This represents a no noticeable deviation compared to its industry's average Forward P/E of 14.8.
We can also see that NVS currently has a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVS's industry had an average PEG ratio of 1.97 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 201, which puts it in the bottom 21% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.