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Novo Nordisk (NVO) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with Novo Nordisk (NVO - Free Report) standing at $80.57, reflecting a -0.57% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.

The the stock of drugmaker has fallen by 7.26% in the past month, lagging the Medical sector's gain of 1.64% and the S&P 500's gain of 2.08%.

The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. The company is slated to reveal its earnings on February 5, 2025. The company is forecasted to report an EPS of $0.84, showcasing a 18.31% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $11.34 billion, indicating a 19.23% growth compared to the corresponding quarter of the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Novo Nordisk. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been a 2.5% fall in the Zacks Consensus EPS estimate. Novo Nordisk presently features a Zacks Rank of #4 (Sell).

From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 20.82. This signifies a premium in comparison to the average Forward P/E of 12.61 for its industry.

Meanwhile, NVO's PEG ratio is currently 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.32.

The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 207, this industry ranks in the bottom 18% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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