Novo Nordisk is an international company that engages in the discovery, development, manufacturing, and marketing of pharmaceuticals. The company operates in two segments—Diabetes Care and Obesity, and Biopharmaceuticals. It uses a network of independent agents and distributors for the marketing and distribution of its products.
The company is headquartered in Bagsvaerd, Denmark and was founded in 1925.
The return on equity is 81.2%, the profit margin is at 43.6% and the operating margin is also at 43.6%.
The company has averaged earnings growth of 10% over the last three years.
In the last quarter the earnings jumped by 26%.
It is also worth noting that the company doesn’t have any long-term debt.
Because the company is based in Denmark there isn’t a lot of analysts’ coverage.
At least that is my assumption. Currently there are only three analysts following the company and two have it rated as a “hold” while the third one has it rated as a “sell”.
What stands out on the chart for me is how the weekly oscillators are at their lowest levels since late 2016. The stochastic readings were in oversold territory for an extended period like it was then and they just recently made a bullish crossover and moved out of oversold territory. When this happened in 2016, it was the start of an upward move that lasted for over a year and saw the stock tack on over 70%. I look for a similar move this time around.
Suggested strategy: Buy NVO with a maximum entry price of $48. I would set a target of at least $72 over the next 12 months (for a potential return of 50%-plus from current prices). I would suggest a stop loss at the $43 level.
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Source: Wealthy Retirement