CEO Lars Fruergaard Jørgensen says that there could be close to 1 billion obesity patients who may benefit from the company’s weight-loss treatments. And for at least the near future, supply likely won’t be able to keep up with the surging demand. The company launched Wegovy in the United Kingdom this month but says it is “through a controlled and limited launch.” This comes after the company also launched Wegovy in Germany back in July.
A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Novo Nordisk A/S, a healthcare company, engages in the research, development, manufacture, and marketing of pharmaceutical products worldwide.
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That said, the stock has been mostly rising all month and has overall performed very well. 4 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for Novo Nordisk A/S in the last year. The consensus among Wall Street equities research analysts is that investors should “moderate buy” NVO shares.
It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The challenge for Novo Nordisk is that simply entering new markets may not lead to significant revenue growth right away as it still needs to improve availability. Supplies remain limited in Germany and a controlled launch in the U.K. NVO’s beta can be found in Trading Information at the top of this page.
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In addition to those European markets, the drug is also available in Norway and Novo Nordisk’s home market of Denmark. In the year so far, shares of Novo Nordisk have surged 42.3% compared with the industry’s 9.0% growth. As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank.
Novo Nordisk has consistently delivered strong financial performance over the past few years. Novo Nordisk’s profit margin has remained consistently high, with a net margin of approximately 30%. In terms of debt, Novo Nordisk has maintained a conservative approach. Novo Nordisk’s debt has kept pace with its assets for several years.
Not too late to invest in Novo Nordisk
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Upgrade to MarketBeat All Access to add more stocks to your watchlist. One share of NVO stock can currently be purchased for approximately $193.14. Wondering when you’ll finally be able to invest in SpaceX, StarLink or The Boring Company? Click the link below to learn when Elon Musk will let these companies finally IPO. Sign-up to receive the latest news and ratings for Novo Nordisk A/S and its competitors with MarketBeat’s FREE daily newsletter.
The Eli Lilly drug has also shown a superior weight-loss reduction in multiple late-stage clinical studies. The increasing demand trend of Wegovy is both a boon and a bane for this Danish pharma company. On the one hand, Novo Nordisk raised its full-year 2023 sales outlook and profit expectations based on the sales upside. On the other hand, the company is struggling to meet demand outside the United States, even with increased production capacity. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
What is Novo Nordisk A/S ADR’s stock style?
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. In June, Lilly announced that it had completed the regulatory submission seeking label expansion for its dual GIP/GLP-1-RA drug tirzepatide to treat obesity or overweight in adults.
- A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.
- Novo Nordisk has several growth opportunities to pursue in the coming years.
- Lars Fruergaard Jørgensen has an approval rating of 92% among the company’s employees.
- At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
- Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
- The company launched Wegovy in the United Kingdom this month but says it is “through a controlled and limited launch.” This comes after the company also launched Wegovy in Germany back in July.
More value-oriented stocks tend to represent financial services, utilities, and energy stocks. Stock splits are typically implemented by companies seeking to lower their share prices and make their stock more accessible to new investors. That strategy makes sense right now as Novo Nordisk prepares for more growth in the second half of 2023. While NVO may dip as the split approaches next week, it has a good chance of rebounding after that as new investors rush to buy in before the next surge.
Novo Nordisk also faces risks related to supply chain disruptions and production delays, as well as cybersecurity and data privacy risks. Lars Fruergaard Jørgensen is the President and CEO of Novo Nordisk A/S, a position he has held since 2017. Jørgensen joined Novo Nordisk in 1991 and has held various management positions, including Executive Vice President and Head of Corporate Development, Strategy and Biopharmaceuticals. For long-term investors, Novo Nordisk can be an excellent stock to buy now. Novo Nordisk has been using contract manufacturers to help meet the soaring demand of Wegovy.
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Stock Price Target NVO
Changes in regulatory requirements, such as changes to reimbursement policies, can significantly impact the company’s financial performance. Novo Nordisk operates in the highly competitive and rapidly evolving pharmaceutical industry, specifically in diabetes and obesity markets. In the obesity market, https://1investing.in/ the global prevalence of obesity has been steadily increasing, and it is expected to continue to rise, driving demand for effective obesity treatments. At around 45 times its trailing earnings, this is a much higher premium than what investors have been paying for Novo Nordisk in the past.
It operates through the Diabetes and Obesity Care, and Biopharm segments. The Diabetes and Obesity Care segment includes insulin, GLP-1 and related delivery systems, oral antidiabetic products (OAD), obesity, and other serious chronic diseases. The Biopharm segment focuses on rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company was founded by Harald Pedersen and Thorvald Pedersen in 1925 is headquartered in Bagsværd, Denmark.
This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year. These returns cover a period from January 1, 1988 through July 31, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
And 92% of that revenue came from diabetes and obesity care products. A stock split is done to lower a single share’s price, making the company’s stock more affordable without losing value. This decision does not impact a company’s total market capitalization. With that in mind, it’s easy to see why the company would be opting for another stock split.
The company’s cash reserves have not always been healthy, but in 2022 Novo Nordisk made a profit for the first time since 2018.Novo Nordisk’s valuation metrics compare favorably to industry peers. It has a price-to-earnings ratio in line with its peers but a price-to-book ratio significantly higher than the industry average. Novo Nordisk’s high P/B ratio reflects its strong brand, market position, and financial performance. Novo Nordisk’s stock has performed well over the past few years, with a 3-year annualized return of around 23%. The stock price has shown some volatility, with significant price movements in response to regulatory and market news related to diabetes and obesity markets. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
The company was founded in 1923 in Denmark and is headquartered in Bagsværd, Denmark. Novo Nordisk has operations in more than 80 countries, including production facilities in nine countries, and employs difference between price ceiling and price floor approximately 48,500 people worldwide. Novo Nordisk A/S is a global healthcare company, which engages in the the discovery, development, manufacturing and marketing of pharmaceutical products.
The ADRs will similarly be split as of 20 September 2023 to maintain the one-to-one relationship between the B-share and the ADR. Novo Nordisk A/S issued an update on its FY 2023 earnings guidance on Thursday, August, 10th. The company issued revenue guidance of $31.29 billion-$32.84 billion, compared to the consensus revenue estimate of $32.04 billion. Novo Nordisk A/S announced a semi-annual dividend on Thursday, August 10th. Shareholders of record on Monday, August 21st will be paid a dividend of $0.8836 per share on Tuesday, August 29th. Either way, this is likely to remain an ongoing problem for Novo Nordisk simply because of the huge market opportunity.