In the latest trading session, Novo Nordisk (NVO) closed at $57.34, marking a +1.36% move from the previous day. This move outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
The drugmaker's shares have seen an increase of 15.33% over the last month, surpassing the Medical sector's gain of 2.01% and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Novo Nordisk in its upcoming release. The company is expected to report EPS of $0.9, down 1.1% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $12.11 billion, indicating a 1.19% decline compared to the corresponding quarter of the prior 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 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Novo Nordisk is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Novo Nordisk is presently being traded at a Forward P/E ratio of 16.13. For comparison, its industry has an average Forward P/E of 15.6, which means Novo Nordisk is trading at a premium to the group.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 32% echelons of all 250+ industries.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Novo Nordisk A/S (NVO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
