In the latest trading session, Novo Nordisk (NVO) closed at $56.09, marking a -1.11% move from the previous day. This change lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 0.47%.
The stock of drugmaker has fallen by 2.54% in the past month, lagging the Medical sector's gain of 3.09% and the S&P 500's gain of 0.92%.
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 November 5, 2025. In that report, analysts expect Novo Nordisk to post earnings of $0.75 per share. This would mark a year-over-year decline of 16.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.88 billion, indicating a 13.12% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.62 per share and a revenue of $48.73 billion, representing changes of +10.37% and +15.77%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 past month, the Zacks Consensus EPS estimate has shifted 6.12% downward. Novo Nordisk is currently sporting a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Novo Nordisk is currently being traded at a Forward P/E ratio of 15.67. This denotes a premium relative to the industry average Forward P/E of 14.61.
It's also important to note that NVO currently trades at a PEG ratio of 2.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.58 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
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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Novo Nordisk A/S (NVO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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