In the latest trading session, Novo Nordisk (NVO) closed at $58.33, marking a +0.43% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 2.36% for the day. Meanwhile, the Dow lost 2.48%, and the Nasdaq, a tech-heavy index, lost 2.55%.
The the stock of drugmaker has fallen by 24.43% in the past month, lagging the Medical sector's loss of 9.83% and the S&P 500's loss of 5.6%.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 7, 2025. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 9.64% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.33 billion, reflecting a 19.09% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.80 per share and a revenue of $49.74 billion, demonstrating changes of +15.85% and +18.15%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.06% lower. Right now, Novo Nordisk possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 15.28. For comparison, its industry has an average Forward P/E of 13.38, which means Novo Nordisk is trading at a premium to the group.
It's also important to note that NVO currently trades at a PEG ratio of 0.93. 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 1.18.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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