Novo Nordisk (NVO) closed the most recent trading day at $50.29, moving +2.53% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq lost 0.26%.
Shares of the drugmaker have depreciated by 2.41% over the course of the past month, underperforming the Medical sector's gain of 3.7%, and the S&P 500's gain of 0.89%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. On that day, Novo Nordisk is projected to report earnings of $0.9 per share, which would represent a year-over-year decline of 1.1%. Alongside, our most recent consensus estimate is anticipating revenue of $12.11 billion, indicating a 1.19% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.57 per share and revenue of $47.87 billion. These totals would mark changes of +8.84% and +13.72%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Novo Nordisk currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 13.74. For comparison, its industry has an average Forward P/E of 13.74, which means Novo Nordisk is trading at no noticeable deviation to the group.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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