For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Switzerland-based Novartis has one of the strongest and broadest portfolios of varied drugs that has enabled it to maintain its dominant position as a top pharma company over the years. It continues to build depth in core therapeutic areas like cardiovascular, renal and metabolic, immunology, neuroscience and oncology in geographies like the United States, China, Germany and Japan. Novartis’ efforts to strengthen its wide portfolio by developing breakthrough treatments have made it even more formidable in this space. Kesimpta, Pluvicto, Scemblix, Kisqali, Leqvio and Fabhalta should fuel growth.
NVS is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 13.2X for the current fiscal year compared to the Large Cap Pharmaceuticals industry's P/E of 14.1X. Additionally, NVS has a PEG Ratio of 1.8 and a Price/Cash Flow ratio of 10.4X. Value investors should also note NVS' Price/Sales ratio of 4.5X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.13 to $8.47 per share. NVS has an average earnings surprise of 6.3%.
NVS should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Novartis AG (NVS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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