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Novo Nordisk (NVO) Stock Declines While Market Improves: Some Information for Investors

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Novo Nordisk (NVO - Free Report) ended the recent trading session at $117.20, demonstrating a -0.48% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.97% for the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.45%.

The the stock of drugmaker has fallen by 10.72% in the past month, lagging the Medical sector's loss of 3.72% and the S&P 500's gain of 5.41%.

Market participants will be closely following the financial results of Novo Nordisk in its upcoming release. The company plans to announce its earnings on November 6, 2024. It is anticipated that the company will report an EPS of $0.88, marking a 20.55% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.69 billion, up 24.59% from the year-ago period.

NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.07 per share and revenue of $42 billion. These results would represent year-over-year changes of +13.7% and +24.6%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Novo Nordisk. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.01% decrease. Currently, Novo Nordisk is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 38.41. This denotes a premium relative to the industry's average Forward P/E of 15.57.

We can additionally observe that NVO currently boasts a PEG ratio of 1.51. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.62 at the close of the market yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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