Novo Nordisk (NVO) closed the latest trading day at $62.62, indicating a +0.87% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
The the stock of drugmaker has fallen by 10.42% in the past month, lagging the Medical sector's loss of 6.38% and the S&P 500's loss of 4.29%.
The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company's earnings report is expected on May 7, 2025. The company is expected to report EPS of $0.91, up 9.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.33 billion, up 19.09% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.81 per share and a revenue of $49.74 billion, indicating changes of +16.16% and +18.15%, respectively, from the former year.
Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.75% lower within the past month. Currently, Novo Nordisk is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Novo Nordisk is currently being traded at a Forward P/E ratio of 16.29. This indicates a premium in contrast to its industry's Forward P/E of 13.44.
Meanwhile, NVO's PEG ratio is currently 0.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 21% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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
