Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Novartis (NVS)
Switzerland-based Novartis has one of the strongest and broadest portfolios of varied drugs that has enabled it to maintain its dominant position as a top pharma company over the years. It continues to build depth in core therapeutic areas like cardiovascular, renal and metabolic, immunology, neuroscience and oncology in geographies like the United States, China, Germany and Japan. Novartis’ efforts to strengthen its wide portfolio by developing breakthrough treatments have made it even more formidable in this space. Cosentyx, Entresto, Kesimpta, Pluvicto, Scemblix, Zolgensma, Kisqali and Leqvio should fuel growth through 2030 and beyond.
NVS sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Large Cap Pharmaceuticals industry’s P/E of 14.2X, shares of Novartis are trading at a forward P/E of 14.1X. NVS also has a PEG Ratio of 1.6, a Price/Cash Flow ratio of 9.3X, and a Price/Sales ratio of 4.3X.
A company’s earnings performance is important for value investors as well. For fiscal 2024, five analysts revised their earnings estimate higher in the last 60 days for NVS, while the Zacks Consensus Estimate has increased $0.10 to $7.27 per share. NVS also holds an average earnings surprise of 2.2%.
NVS should be on investors’ short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Novartis AG (NVS) : Free Stock Analysis Report
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