As earnings season approaches, savvy investors are on the lookout for stocks that may outperform expectations. One such candidate is Novo Nordisk A/S (NVO). The company’s upcoming earnings report is backed by favorable estimate revisions, hinting at the potential for a positive surprise.
Analysts have recently adjusted their earnings projections for Novo Nordisk, with the Most Accurate Estimate for the current quarter surpassing the Zacks Consensus Estimate of 66 cents per share. This upward adjustment translates to a Zacks Earnings ESP of +0.89%, indicating an optimistic outlook heading into the earnings announcement.
Novo Nordisk A/S Price and EPS Surprise
Novo Nordisk A/S price-eps-surprise | Novo Nordisk A/S Quote
Significance of the Current Situation
A positive Zacks Earnings ESP has historically been a strong indicator of forthcoming positive surprises and market outperformance. Over the last decade, stocks with a positive Earnings ESP and a Zacks Rank #3 (Hold) or better have surpassed expectations close to 70% of the time, with an average annual return of over 28% (see more Top Earnings ESP stocks here).
With a Zacks Rank #1 (Strong Buy) and a positive ESP, Novo Nordisk appears to be strategically positioned to outperform in its upcoming report. A strong indicator of potential future growth lies in the recent positive earnings estimate revisions for the company.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.