NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) – A Strong Growth Stock with Technical Breakout Potential

NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a technical pattern that suggests potential upside. Below, we examine why NVO stands out.

Fundamental Strengths

• Growth: NVO has demonstrated strong revenue growth, increasing by 25.03% in the past year, with an 18.94% average annual growth rate over recent years. Earnings per share (EPS) growth is also robust at 15.52% year-over-year.
• Profitability: The company’s return on equity (70.38%) and return on invested capital (43.02%) are among the best in the pharmaceuticals industry, outperforming most peers.
• Valuation: Despite strong fundamentals, NVO trades at a reasonable forward P/E of 12.89, below both the industry and S&P 500 averages.
• Financial Health: With a solid Altman-Z score (5.50) and manageable debt levels, NVO maintains a stable financial position.

Technical Setup

• Consolidation Pattern: NVO has been trading in a range between $57.00 and $69.86, showing reduced volatility and potential for a breakout.
• Resistance Zone: A key resistance area lies between $68.52 and $71.04. A decisive move above this level could signal further upside.
• Setup Rating: The stock earns a technical setup rating of 7/10, indicating a favorable pattern despite recent underperformance.

For a deeper look, review the full fundamental report and technical analysis.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.