Novo Nordisk (NVO) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Novo Nordisk (NVO) closed at $36.33, marking a -1.52% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 0.77%.

The stock of drugmaker has fallen by 4.41% in the past month, leading the Medical sector's loss of 8.43% and the S&P 500's loss of 4.71%.

Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. On that day, Novo Nordisk is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 7.61%. In the meantime, our current consensus estimate forecasts the revenue to be $11.06 billion, indicating a 0.48% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $45.13 billion, which would represent changes of -15.4% and -3.51%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Novo Nordisk. Such recent modifications usually signify the changing landscape 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. Novo Nordisk presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Novo Nordisk is holding a Forward P/E ratio of 11. This denotes a discount relative to the industry average Forward P/E of 14.12.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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