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Novartis (NVS) Outperforms Broader Market: What You Need to Know
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In the latest market close, Novartis (NVS - Free Report) reached $99.71, with a +1.18% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.16%.
The drugmaker's stock has climbed by 1.6% in the past month, falling short of the Medical sector's gain of 4.24% and the S&P 500's gain of 4.89%.
Investors will be eagerly watching for the performance of Novartis in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.65, indicating a 9.27% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $11.65 billion, down 8.2% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.56 per share and revenue of $45.41 billion, which would represent changes of +7.54% and -10.16%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Novartis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.51% rise in the Zacks Consensus EPS estimate. Novartis currently has a Zacks Rank of #2 (Buy).
Investors should also note Novartis's current valuation metrics, including its Forward P/E ratio of 15.02. This signifies a discount in comparison to the average Forward P/E of 15.63 for its industry.
We can additionally observe that NVS currently boasts a PEG ratio of 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 2.65 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Novartis (NVS) Outperforms Broader Market: What You Need to Know
In the latest market close, Novartis (NVS - Free Report) reached $99.71, with a +1.18% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.16%.
The drugmaker's stock has climbed by 1.6% in the past month, falling short of the Medical sector's gain of 4.24% and the S&P 500's gain of 4.89%.
Investors will be eagerly watching for the performance of Novartis in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.65, indicating a 9.27% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $11.65 billion, down 8.2% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.56 per share and revenue of $45.41 billion, which would represent changes of +7.54% and -10.16%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Novartis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.51% rise in the Zacks Consensus EPS estimate. Novartis currently has a Zacks Rank of #2 (Buy).
Investors should also note Novartis's current valuation metrics, including its Forward P/E ratio of 15.02. This signifies a discount in comparison to the average Forward P/E of 15.63 for its industry.
We can additionally observe that NVS currently boasts a PEG ratio of 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 2.65 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.