Novo Nordisk (NVO) Stock Sinks As Market Gains: Here's Why

In the latest trading session, Novo Nordisk (NVO) closed at $60.71, marking a -1.12% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 0.7%. Shares of the drugmaker witnessed a gain of 7.76% over the previous month, beating the performance of the Medical sector with its gain of 1.25%, and the S&P 500's gain of 4.03%.The investment community will be closely monitoring the performance of Novo Nordisk in its forthcoming earnings report. The company is scheduled to release its earnings on November 5, 2025. The company is expected to report EPS of $0.95, up 5.56% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $12.06 billion, indicating a 14.77% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.85 per share and revenue of $48.52 billion. These totals would mark changes of +17.38% and +15.25%, respectively, from last year. Investors should also pay attention to any latest changes in analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Novo Nordisk is currently sporting a Zacks Rank of #4 (Sell). With respect to valuation, Novo Nordisk is currently being traded at a Forward P/E ratio of 15.97. This denotes a premium relative to the industry average Forward P/E of 14.35. We can additionally observe that NVO currently boasts a PEG ratio of 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.53. The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>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