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Novo Nordisk (NVO) Surpasses Market Returns: Some Facts Worth Knowing
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Novo Nordisk (NVO - Free Report) ended the recent trading session at $128.05, demonstrating a +1.04% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.
The drugmaker's shares have seen a decrease of 11.22% over the last month, not keeping up with the Medical sector's gain of 0.48% and the S&P 500's loss of 0.21%.
Market participants will be closely following the financial results of Novo Nordisk in its upcoming release. It is anticipated that the company will report an EPS of $0.76, marking a 20.63% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $9.91 billion, up 24.9% from the year-ago period.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.38 per share and revenue of $42.45 billion. These results would represent year-over-year changes of +25.19% and +25.92%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Novo Nordisk is holding a Forward P/E ratio of 37.51. This valuation marks a premium compared to its industry's average Forward P/E of 15.82.
Also, we should mention that NVO has a PEG ratio of 1.27. 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. NVO's industry had an average PEG ratio of 1.64 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.
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Novo Nordisk (NVO) Surpasses Market Returns: Some Facts Worth Knowing
Novo Nordisk (NVO - Free Report) ended the recent trading session at $128.05, demonstrating a +1.04% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.
The drugmaker's shares have seen a decrease of 11.22% over the last month, not keeping up with the Medical sector's gain of 0.48% and the S&P 500's loss of 0.21%.
Market participants will be closely following the financial results of Novo Nordisk in its upcoming release. It is anticipated that the company will report an EPS of $0.76, marking a 20.63% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $9.91 billion, up 24.9% from the year-ago period.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.38 per share and revenue of $42.45 billion. These results would represent year-over-year changes of +25.19% and +25.92%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Novo Nordisk is holding a Forward P/E ratio of 37.51. This valuation marks a premium compared to its industry's average Forward P/E of 15.82.
Also, we should mention that NVO has a PEG ratio of 1.27. 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. NVO's industry had an average PEG ratio of 1.64 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NVO in the coming trading sessions, be sure to utilize Zacks.com.