Novartis AG (NVS) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Novartis (NVS). Shares have been marching higher, with the stock up 2.7% over the past month. The stock hit a new 52-week high of $131.96 in the previous session. Novartis has gained 35.4% since the start of the year compared to the 2.6% move for the Zacks Medical sector and the 8.3% return for the Zacks Large Cap Pharmaceuticals industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 17, 2025, Novartis reported EPS of $2.42 versus consensus estimate of $2.38 while it beat the consensus revenue estimate by 0.13%.For the current fiscal year, Novartis is expected to post earnings of $8.99 per share on $56.01 in revenues. This represents a 15.24% change in EPS on a 10.51% change in revenues. For the next fiscal year, the company is expected to earn $9.4 per share on $57.36 in revenues. This represents a year-over-year change of 4.56% and 2.41%, respectively.Valuation MetricsNovartis may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Novartis has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 14.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.3X. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 12.3X. Additionally, the stock has a PEG ratio of 1.84. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Novartis currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Novartis passes the test. Thus, it seems as though Novartis shares could still be poised for more gains ahead.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 Novartis AG (NVS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks