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Novo Nordisk (NVO) Ascends While Market Falls: Some Facts to Note
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Novo Nordisk (NVO - Free Report) closed at $106.95 in the latest trading session, marking a +0.52% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.09%.
Prior to today's trading, shares of the drugmaker had gained 10.09% over the past month. This has outpaced the Medical sector's gain of 6.58% and the S&P 500's gain of 3.5% in that time.
Market participants will be closely following the financial results of Novo Nordisk in its upcoming release. The company is forecasted to report an EPS of $0.65, showcasing a 54.76% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.75 billion, indicating a 32.52% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. As of now, Novo Nordisk holds a Zacks Rank of #2 (Buy).
With respect to valuation, Novo Nordisk is currently being traded at a Forward P/E ratio of 33.72. This valuation marks a premium compared to its industry's average Forward P/E of 14.45.
We can additionally observe that NVO currently boasts a PEG ratio of 1.22. 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 1.9 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 39% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Novo Nordisk (NVO) Ascends While Market Falls: Some Facts to Note
Novo Nordisk (NVO - Free Report) closed at $106.95 in the latest trading session, marking a +0.52% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.09%.
Prior to today's trading, shares of the drugmaker had gained 10.09% over the past month. This has outpaced the Medical sector's gain of 6.58% and the S&P 500's gain of 3.5% in that time.
Market participants will be closely following the financial results of Novo Nordisk in its upcoming release. The company is forecasted to report an EPS of $0.65, showcasing a 54.76% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.75 billion, indicating a 32.52% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. As of now, Novo Nordisk holds a Zacks Rank of #2 (Buy).
With respect to valuation, Novo Nordisk is currently being traded at a Forward P/E ratio of 33.72. This valuation marks a premium compared to its industry's average Forward P/E of 14.45.
We can additionally observe that NVO currently boasts a PEG ratio of 1.22. 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 1.9 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 39% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.