Novo Nordisk (NVO) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future potential through earnings and sales projections [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive evaluation of stocks based on value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to aid in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential to utilize Style Scores to narrow down choices [8] - For optimal returns, stocks should ideally have a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks and declining forecasts pose higher risks despite good Style Scores [10] Company Spotlight: Novo Nordisk - Novo Nordisk, based in Denmark, is a leading global healthcare company specializing in diabetes care and other therapeutic areas [11] - Currently rated 3 (Hold) with a VGM Score of B, Novo Nordisk has a Momentum Style Score of B, with shares increasing by 4% over the past month [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate rising by $0.14 to $3.98 per share, indicating a stable earnings surprise of +0% [12]