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Novartis (NVS) Increases Yet Falls Behind Market: What Investors Need to Know
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The latest trading session saw Novartis (NVS - Free Report) ending at $96.32, denoting a +0.42% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.57%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.39%.
Shares of the drugmaker have depreciated by 4.26% over the course of the past month, underperforming the Medical sector's gain of 0.13% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Novartis in its forthcoming earnings report. On that day, Novartis is projected to report earnings of $1.73 per share, which would represent year-over-year growth of 1.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.43 billion, indicating a 11.75% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.18 per share and revenue of $47.44 billion, indicating changes of +4.06% and -4.69%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Novartis. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Novartis is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Novartis is currently being traded at a Forward P/E ratio of 13.37. This denotes a discount relative to the industry's average Forward P/E of 14.16.
Investors should also note that NVS has a PEG ratio of 1.49 right now. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.72.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 208, this industry ranks in the bottom 18% of all industries, numbering over 250.
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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Novartis (NVS) Increases Yet Falls Behind Market: What Investors Need to Know
The latest trading session saw Novartis (NVS - Free Report) ending at $96.32, denoting a +0.42% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.57%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.39%.
Shares of the drugmaker have depreciated by 4.26% over the course of the past month, underperforming the Medical sector's gain of 0.13% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Novartis in its forthcoming earnings report. On that day, Novartis is projected to report earnings of $1.73 per share, which would represent year-over-year growth of 1.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.43 billion, indicating a 11.75% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.18 per share and revenue of $47.44 billion, indicating changes of +4.06% and -4.69%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Novartis. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Novartis is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Novartis is currently being traded at a Forward P/E ratio of 13.37. This denotes a discount relative to the industry's average Forward P/E of 14.16.
Investors should also note that NVS has a PEG ratio of 1.49 right now. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.72.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 208, this industry ranks in the bottom 18% of all industries, numbering over 250.
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.