Yahoo Finance Novo Nordisk (NVO) Outpaces Stock Market Gains: What You Should Know
Novo Nordisk (NVO) closed the most recent trading day at $159.45, moving +1.22% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.
Heading into today, shares of the drugmaker had lost 7.01% over the past month, lagging the Medical sector's loss of 2.88% and the S&P 500's gain of 3.44% in that time.
Novo Nordisk will be looking to display strength as it nears its next earnings release. On that day, Novo Nordisk is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 53.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.28 billion, up 40.04% from the year-ago period.
It is also important to note the recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.32% higher within the past month. Novo Nordisk is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 31.07. For comparison, its industry has an average Forward P/E of 14.65, which means Novo Nordisk is trading at a premium to the group.
We can also see that NVO currently has a PEG ratio of 1.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Novo Nordisk A/S (NVO) : Free Stock Analysis Report
