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Novo Nordisk (NVO) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest market close, Novo Nordisk (NVO - Free Report) reached $140.87, with a -0.37% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
The drugmaker's stock has climbed by 0.73% in the past month, exceeding the Medical sector's gain of 0.71% and lagging the S&P 500's gain of 3.82%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.79, showcasing a 25.4% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $9.85 billion, indicating a 24.13% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.40 per share and a revenue of $127.38 billion, representing changes of +25.93% and +277.87%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.49% downward. Currently, Novo Nordisk is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 41.61 right now. This denotes a premium relative to the industry's average Forward P/E of 14.97.
One should further note that NVO currently holds a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.89.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 43% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Novo Nordisk (NVO) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, Novo Nordisk (NVO - Free Report) reached $140.87, with a -0.37% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
The drugmaker's stock has climbed by 0.73% in the past month, exceeding the Medical sector's gain of 0.71% and lagging the S&P 500's gain of 3.82%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.79, showcasing a 25.4% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $9.85 billion, indicating a 24.13% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.40 per share and a revenue of $127.38 billion, representing changes of +25.93% and +277.87%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.49% downward. Currently, Novo Nordisk is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 41.61 right now. This denotes a premium relative to the industry's average Forward P/E of 14.97.
One should further note that NVO currently holds a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.89.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 43% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.