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Novartis (NVS) Increases Despite Market Slip: Here's What You Need to Know
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Novartis (NVS - Free Report) closed the latest trading day at $101, indicating a +0.03% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 1.64%.
Coming into today, shares of the drugmaker had gained 2% in the past month. In that same time, the Medical sector gained 4.53%, while the S&P 500 gained 4%.
The upcoming earnings release of Novartis will be of great interest to investors. On that day, Novartis is projected to report earnings of $1.65 per share, which would represent year-over-year growth of 9.27%. Alongside, our most recent consensus estimate is anticipating revenue of $11.65 billion, indicating an 8.2% downward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Novartis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.59% upward. Right now, Novartis possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Novartis is currently trading at a Forward P/E ratio of 14.03. Its industry sports an average Forward P/E of 13.87, so one might conclude that Novartis is trading at a premium comparatively.
We can additionally observe that NVS currently boasts a PEG ratio of 1.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.84 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Novartis (NVS) Increases Despite Market Slip: Here's What You Need to Know
Novartis (NVS - Free Report) closed the latest trading day at $101, indicating a +0.03% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 1.64%.
Coming into today, shares of the drugmaker had gained 2% in the past month. In that same time, the Medical sector gained 4.53%, while the S&P 500 gained 4%.
The upcoming earnings release of Novartis will be of great interest to investors. On that day, Novartis is projected to report earnings of $1.65 per share, which would represent year-over-year growth of 9.27%. Alongside, our most recent consensus estimate is anticipating revenue of $11.65 billion, indicating an 8.2% downward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Novartis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.59% upward. Right now, Novartis possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Novartis is currently trading at a Forward P/E ratio of 14.03. Its industry sports an average Forward P/E of 13.87, so one might conclude that Novartis is trading at a premium comparatively.
We can additionally observe that NVS currently boasts a PEG ratio of 1.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.84 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.