Novo Nordisk (NVO) shares are climbing on estimate revisions as the next report approaches.

Company Description

Novo manufactures pharmaceutical products and specializes in insulin and diabetes care. The biopharmaceutical segment explores hormone therapy and homeostasis management.

Estimates Up

Analysts are raising estimates as the next quarterly report nears. The consensus estimate for this year is now $3.17, up from $3.01 over the past 3 months. Estimates for next year are averaging $3.77, up from $3.65 in that time span.

These forecasts represent year-over-year earnings growth of 4% and 19%, respectively, as all 5 analysts raised projections in the past month.

Strong Quarterly Results

Novo reported its first-quarter results in April, which included an 18% jump in sales. Profits rose 35% on a year-over-year basis.

Industry Comparisons

One of the most appealing aspects of the company is its minuscule 0.03 debt to equity ratio, in a business where the average is almost 27 times. Novo currently has a net profit margin of more than 21%, about 4 points higher than its peers. The return on equity is an impressive 28%, 5% higher than the industry norm.

The Chart

Shares of NVO have broken through a long-term level of resistance and have solid upward momentum. Take a look at the chart below.

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