Novartis (NVS) Gains But Lags Market: What You Should Know
Novartis (NVS) closed the most recent trading day at $91.64, moving +0.09% from the previous trading session. This move lagged the S&P 500's daily gain of 0.15%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.05%.
Coming into today, shares of the drugmaker had gained 4.69% in the past month. In that same time, the Medical sector gained 5.8%, while the S&P 500 gained 1.32%.
Investors will be hoping for strength from NVS as it approaches its next earnings release. In that report, analysts expect NVS to post earnings of $1.26 per share. This would mark year-over-year growth of 1.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.95 billion, down 9.96% from the year-ago period.
NVS's full-year Zacks Consensus Estimates are calling for earnings of $5.22 per share and revenue of $47.79 billion. These results would represent year-over-year changes of +2.55% and -7.92%, respectively.
It is also important to note the recent changes to analyst estimates for NVS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. NVS is currently a Zacks Rank #3 (Hold).
Digging into valuation, NVS currently has a Forward P/E ratio of 17.55. For comparison, its industry has an average Forward P/E of 14.79, which means NVS is trading at a premium to the group.
It is also worth noting that NVS currently has a PEG ratio of 2.01. 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. NVS's industry had an average PEG ratio of 2.11 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.