Novartis (NVS) Stock Moves -0.58%: What You Should Know
In the latest trading session, Novartis (NVS) closed at $75.57, marking a -0.58% move from the previous day. This change was narrower than the S&P 500's 2.37% loss on the day. Meanwhile, the Dow lost 1.35%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Coming into today, shares of the drugmaker had lost 5.86% in the past month. In that same time, the Medical sector lost 3.73%, while the S&P 500 lost 6.51%.
Novartis will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. In that report, analysts expect Novartis to post earnings of $1.58 per share. This would mark a year-over-year decline of 7.6%. Our most recent consensus estimate is calling for quarterly revenue of $12.9 billion, down 0.96% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.08 per share and revenue of $51.43 billion. These totals would mark changes of -2.56% and -0.94%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Novartis. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Novartis is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Novartis's current valuation metrics, including its Forward P/E ratio of 12.5. This represents a discount compared to its industry's average Forward P/E of 12.58.
Also, we should mention that NVS has a PEG ratio of 2.14. 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 1.75 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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