Novo Nordisk (NVO) ended the recent trading session at $59.32, demonstrating a -2.24% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%.
The stock of drugmaker has risen by 17.57% in the past month, leading the Medical sector's loss of 1.32% and the S&P 500's loss of 0.42%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. It is anticipated that the company will report an EPS of $0.91, marking stability compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $12.11 billion, reflecting a 1.19% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.59 per share and revenue of $48.11 billion, indicating changes of +9.45% and 0%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Novo Nordisk. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.34% higher. Novo Nordisk currently has a Zacks Rank of #4 (Sell).
Investors should also note Novo Nordisk's current valuation metrics, including its Forward P/E ratio of 17.24. This denotes a premium relative to the industry average Forward P/E of 14.81.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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