Yahoo Finance Bull of the Day: Novo Nordisk (NVO)
Novo Nordisk NVO, a global healthcare company, is a leader in the worldwide diabetes market. The company operates through two segments: Diabetes and obesity care and Biopharmaceuticals.
Analysts have recently taken a bullish stance on the company’s earnings outlook, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Aside from the improved earnings outlook, let’s look at several other aspects of NVO shares.
Current Standing
For those seeking dividends, Novo Nordisk has that covered; NVO shares currently yield 1.1% annually, with the company’s payout sitting at a sustainable 45% of earnings.
While the current yield is below the Zacks Medical sector average, the company’s 9.4% five-year annualized dividend growth rate helps bridge the gap.
Image Source: Zacks Investment Research
Shares may not entice value-focused investors, with the current 31.1X forward earnings multiple sitting on the higher end of the spectrum and well above the 24.5X five-year median. The stock carries a Style Score of “D” for Value.
Image Source: Zacks Investment Research
Still, investors have had little issue forking up the premium for NVO shares given the company’s growth profile, with earnings forecasted to climb nearly 50% in its current fiscal year (FY23) and an additional 17% in FY24.
The stock carries a Style Score of “A” for Growth.
Image Source: Zacks Investment Research
Keep an eye out for the company’s upcoming quarterly report expected on August 2nd; the Zacks Consensus EPS Estimate of $1.29 indicates a sizable 53% uptick in earnings year-over-year. In addition, it’s worth noting that the quarterly EPS estimate has been revised nearly 12% higher just since March.
Further, the company is forecasted to post $8.3 billion in quarterly revenue, reflecting more than 40% improvement from the year-ago period. The quarterly sales estimate has been revised nearly 15% higher since March.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Novo Nordisk NVO would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Novo Nordisk A/S (NVO) : Free Stock Analysis Report
