Novo Nordisk (NVO) closed at $52.39 in the latest trading session, marking a +2.97% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
Shares of the drugmaker have appreciated by 6.02% over the course of the past month, outperforming the Medical sector's gain of 0.17%, and the S&P 500's gain of 0.54%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. In that report, analysts expect Novo Nordisk to post earnings of $0.9 per share. This would mark a year-over-year decline of 1.1%. Simultaneously, our latest consensus estimate expects the revenue to be $12.11 billion, showing a 1.19% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.57 per share and a revenue of $47.95 billion, signifying shifts of +8.84% and 0%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.1% lower. Novo Nordisk is currently a Zacks Rank #5 (Strong Sell).
With respect to valuation, Novo Nordisk is currently being traded at a Forward P/E ratio of 14.5. This expresses no noticeable deviation compared to the average Forward P/E of 14.5 of its industry.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 105, this industry ranks in the top 43% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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