Novo Nordisk (NVO) Ascends While Market Falls: Some Facts to Note

Novo Nordisk (NVO) closed at $69.82 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq lost 0.82%. Shares of the drugmaker have depreciated by 5.23% over the course of the past month, underperforming the Medical sector's gain of 1.66%, and the S&P 500's gain of 5.17%.The investment community will be closely monitoring the performance of Novo Nordisk in its forthcoming earnings report. In that report, analysts expect Novo Nordisk to post earnings of $0.91 per share. This would mark year-over-year growth of 40%. Our most recent consensus estimate is calling for quarterly revenue of $11.83 billion, up 20.47% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.9 per share and a revenue of $50.07 billion, signifying shifts of +18.9% and +18.94%, respectively, from the last year. Any recent changes to analyst estimates for Novo Nordisk should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 1.56% rise in the Zacks Consensus EPS estimate. At present, Novo Nordisk boasts a Zacks Rank of #3 (Hold). In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 17.72. For comparison, its industry has an average Forward P/E of 13.9, which means Novo Nordisk is trading at a premium to the group. Meanwhile, NVO's PEG ratio is currently 1.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.23 as of yesterday's close. The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks