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Novo Nordisk (NVO) Stock Drops Despite Market Gains: Important Facts to Note
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The latest trading session saw Novo Nordisk (NVO - Free Report) ending at $92.06, denoting a -0.07% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.39%.
Shares of the drugmaker have depreciated by 5.71% over the course of the past month, underperforming the Medical sector's loss of 1.62% and the S&P 500's loss of 3.39%.
The investment community will be closely monitoring the performance of Novo Nordisk in its forthcoming earnings report. On that day, Novo Nordisk is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 34.88%. In the meantime, our current consensus estimate forecasts the revenue to be $8.02 billion, indicating a 29.99% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.19 per share and revenue of $32.03 billion. These totals would mark changes of +26.59% and +28%, respectively, from last year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 15.61% decrease. Novo Nordisk presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 42.04. This denotes a premium relative to the industry's average Forward P/E of 13.98.
One should further note that NVO currently holds a PEG ratio of 1.68. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 14% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Novo Nordisk (NVO) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Novo Nordisk (NVO - Free Report) ending at $92.06, denoting a -0.07% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.39%.
Shares of the drugmaker have depreciated by 5.71% over the course of the past month, underperforming the Medical sector's loss of 1.62% and the S&P 500's loss of 3.39%.
The investment community will be closely monitoring the performance of Novo Nordisk in its forthcoming earnings report. On that day, Novo Nordisk is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 34.88%. In the meantime, our current consensus estimate forecasts the revenue to be $8.02 billion, indicating a 29.99% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.19 per share and revenue of $32.03 billion. These totals would mark changes of +26.59% and +28%, respectively, from last year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 15.61% decrease. Novo Nordisk presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 42.04. This denotes a premium relative to the industry's average Forward P/E of 13.98.
One should further note that NVO currently holds a PEG ratio of 1.68. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 14% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.