Novo Nordisk (NVO) Stock Drops Despite Market Gains: Important Facts to Note

Novo Nordisk (NVO) closed the most recent trading day at $87.37, moving -1.51% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.1%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 1.35%.The the stock of drugmaker has fallen by 15.16% in the past month, lagging the Medical sector's loss of 3.78% and the S&P 500's gain of 0.22%.The upcoming earnings release of Novo Nordisk will be of great interest to investors. The company is predicted to post an EPS of $0.88, indicating a 23.94% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $11.67 billion, showing a 22.7% escalation compared to the year-ago quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.23 per share and a revenue of $40.62 billion, signifying shifts of +19.63% and +20.49%, respectively, from the last year.Investors should also take note of any recent adjustments to analyst estimates for Novo Nordisk. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. Novo Nordisk is holding a Zacks Rank of #3 (Hold) right now.In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 27.46. Its industry sports an average Forward P/E of 13.85, so one might conclude that Novo Nordisk is trading at a premium comparatively.We can also see that NVO currently has a PEG ratio of 1.14. 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. NVO's industry had an average PEG ratio of 1.46 as of yesterday's close.The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% of all 250+ industries.The Zacks Industry Rank gauges the strength of our 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks