In the latest trading session, Novo Nordisk (NVO) closed at $108.82, marking a -0.14% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.19% for the day. Elsewhere, the Dow saw a downswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.18%.
Prior to today's trading, shares of the drugmaker had gained 3.43% over the past month. This has outpaced the Medical sector's loss of 0.81% and lagged the S&P 500's gain of 6.66% in that time.
Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. In that report, analysts expect Novo Nordisk to post earnings of $0.89 per share. This would mark year-over-year growth of 25.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.58 billion, up 21.77% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $40.61 billion. These totals would mark changes of +21.11% and +20.46%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Within the past 30 days, our consensus EPS projection has moved 12.67% higher. At present, Novo Nordisk boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 33.35. This valuation marks a premium compared to its industry's average Forward P/E of 14.23.
One should further note that NVO currently holds a PEG ratio of 1.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.47 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 160, positioning it in the bottom 37% 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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