Novo Nordisk (NVO) ended the recent trading session at $75.89, demonstrating a +1.47% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.91%. Elsewhere, the Dow lost 1.5%, while the tech-heavy Nasdaq lost 1.96%.

Shares of the drugmaker have depreciated by 8.56% over the course of the past month, underperforming the Medical sector's loss of 1.88% and the S&P 500's loss of 7.38%.

Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.93, marking a 12.05% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.29 billion, up 18.67% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.84 per share and revenue of $49.89 billion, indicating changes of +17.07% and +18.52%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Novo Nordisk. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.84% decrease. As of now, Novo Nordisk holds a Zacks Rank of #3 (Hold).

In terms of valuation, Novo Nordisk is currently trading at a Forward P/E ratio of 19.49. This indicates a premium in contrast to its industry's Forward P/E of 14.5.

We can also see that NVO currently has a PEG ratio of 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.32.

The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Novo Nordisk A/S (NVO) : Free Stock Analysis Report

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

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