In the latest trading session, Novo Nordisk (NVO) closed at $52.56, marking a +1.84% move from the previous day. This move outpaced the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.22%.
Heading into today, shares of the drugmaker had gained 9.67% over the past month, outpacing the Medical sector's gain of 1.67% and the S&P 500's gain of 4.7%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $12.11 billion, indicating a 1.19% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.57 per share and a revenue of $47.95 billion, representing changes of +8.84% and +13.9%, respectively, from the prior year.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.22% lower. Right now, Novo Nordisk possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Novo Nordisk has a Forward P/E ratio of 14.45 right now. Its industry sports an average Forward P/E of 14.45, so one might conclude that Novo Nordisk is trading at no noticeable deviation comparatively.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 161, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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