Novo Nordisk A/S (NVO) Is Today's Pre-Market Mover With Heavy Volume Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Novo Nordisk A/S ( NVO) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Novo Nordisk A/S as such a stock due to the following factors:

  • NVO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.4 million.
  • NVO traded 600,650 shares today in the pre-market hours as of 8:17 AM, representing 64.7% of its average daily volume.

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More details on NVO:

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. The stock currently has a dividend yield of 1.4%. NVO has a PE ratio of 4.0. Currently there are 2 analysts that rate Novo Nordisk A/S a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Novo Nordisk A/S has been 1.0 million shares per day over the past 30 days. Novo Nordisk A/S has a market cap of $122.5 billion and is part of the health care sector and drugs industry. Shares are up 20.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Novo Nordisk A/S as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.32% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NVO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • NOVO NORDISK A/S has improved earnings per share by 19.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NOVO NORDISK A/S increased its bottom line by earning $1.73 versus $1.37 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.73).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, NOVO NORDISK A/S's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for NOVO NORDISK A/S is currently very high, coming in at 82.96%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.74% significantly outperformed against the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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