
Biocon Executive Chairperson on Insulin Capacity
Biocon and Biocon Biologics Executive Chairperson, Kiran Mazumdar-Shaw, says they're adding capacity at their insulin facility in Malaysia and sees a 'windfall' from Novo Nordisk's global pullback from the production of the drug. She spoke exclusively on Bloomberg's "Insight with Haslinda Amin." (Source: Bloomberg)
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Nomura Flags Risk of Sharp Yen Rally on US-Japan Policy Pressure
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Yahoo
an hour ago
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Investors Heavily Search Novo Nordisk A/S (NVO): Here is What You Need to Know
Novo Nordisk (NVO) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this drugmaker have returned +12%, compared to the Zacks S&P 500 composite's +5.3% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which Novo Nordisk falls in, has lost 3%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Novo Nordisk is expected to post earnings of $0.88 per share for the current quarter, representing a year-over-year change of +35.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.7%. For the current fiscal year, the consensus earnings estimate of $3.84 points to a change of +17.1% from the prior year. Over the last 30 days, this estimate has changed -1.3%. For the next fiscal year, the consensus earnings estimate of $4.64 indicates a change of +20.9% from what Novo Nordisk is expected to report a year ago. Over the past month, the estimate has changed -2.4%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Novo Nordisk. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Novo Nordisk, the consensus sales estimate for the current quarter of $11.73 billion indicates a year-over-year change of +19.5%. For the current and next fiscal years, $47.95 billion and $57.02 billion estimates indicate +13.9% and +18.9% changes, respectively. Novo Nordisk reported revenues of $11.01 billion in the last reported quarter, representing a year-over-year change of +15.7%. EPS of $0.92 for the same period compares with $0.83 a year ago. Compared to the Zacks Consensus Estimate of $11.33 billion, the reported revenues represent a surprise of -2.84%. The EPS surprise was 0%. Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Novo Nordisk is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Novo Nordisk. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio


Bloomberg
an hour ago
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China OKs Rare Earth Exports to US Carmakers, Reuters Says
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