In the latest close session, Novo Nordisk (NVO) was down 1.59% at $52.05. The stock trailed the S&P 500, which registered a daily gain of 0.23%. On the other hand, the Dow registered a gain of 0.34%, and the technology-centric Nasdaq increased by 0.8%.
The drugmaker's shares have seen a decrease of 4.7% over the last month, not keeping up with the Medical sector's gain of 5.57% and the S&P 500's gain of 3.57%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company's earnings report is expected on November 5, 2025. The company is predicted to post an EPS of $0.75, indicating a 16.67% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $11.88 billion, indicating a 13.12% upward movement from the same quarter last year.
NVO's full-year Zacks Consensus Estimates are calling for earnings of $3.66 per share and revenue of $48.96 billion. These results would represent year-over-year changes of +11.59% and +16.29%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Novo Nordisk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.92% lower. Right now, Novo Nordisk possesses a Zacks Rank of #4 (Sell).
Looking at its valuation, Novo Nordisk is holding a Forward P/E ratio of 14.44. This expresses no noticeable deviation compared to the average Forward P/E of 14.44 of its industry.
It is also worth noting that NVO currently has a PEG ratio of 2.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.61.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 32% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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