Yahoo Finance Here's Why Novartis (NVS) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 14.5X, shares of Novartis are trading at a forward P/E of 14.5X. NVS also has a PEG Ratio of 1.6, a Price/Cash Flow ratio of 9.5X, and a Price/Sales ratio of 4.4X.
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 $0.14 to $7.27 per share. NVS also holds an average earnings surprise of 2.2%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding NVS to their portfolios.
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Novartis AG (NVS) : Free Stock Analysis Report
