Novo Nordisk (NVO) closed the most recent trading day at $84.03, moving -1.36% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.47% for the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
The drugmaker's shares have seen a decrease of 0.96% over the last month, not keeping up with the Medical sector's gain of 3.2% and the S&P 500's gain of 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of Novo Nordisk in its upcoming earnings disclosure. The company's earnings report is set to go public on February 5, 2025. The company's upcoming EPS is projected at $0.83, signifying a 16.9% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.34 billion, indicating a 19.23% increase compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 4.97% lower within the past month. Novo Nordisk is currently sporting a Zacks Rank of #4 (Sell).
In the context of valuation, Novo Nordisk is at present trading with a Forward P/E ratio of 22.45. For comparison, its industry has an average Forward P/E of 12.92, which means Novo Nordisk is trading at a premium to the group.
One should further note that NVO currently holds a PEG ratio of 0.96. 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. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.34.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% 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.
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