Why Novartis (NVS) is a Top Momentum Stock for the Long-Term

Zacks Investment Research highlights Novartis (NVS) as a compelling momentum stock, citing its Zacks Rank of #2 (Buy) and a VGM Score of A. NVS shares are up 8.6% over the past four weeks, with four analysts revising their fiscal 2025 earnings estimates upward in the last 60 days, increasing the consensus estimate to $8.74 per share; the company also has a 7.1% average earnings surprise. Novartis's strong portfolio of drugs, including Kesimpta, Pluvicto, and Scemblix, is expected to drive future growth.

Analysis

Novartis (NVS) is highlighted as a strong investment candidate based on several positive financial indicators and strategic strengths. The company currently holds a Zacks Rank #2 (Buy), complemented by a top-tier VGM Score of 'A' and a Momentum Style Score of 'B', signaling favorable overall investment characteristics and recent positive price movement. This is substantiated by an 8.6% increase in NVS shares over the past four weeks. Analyst sentiment appears robust, with four analysts revising their fiscal 2025 earnings estimates upward in the last 60 days, resulting in a $0.30 increase in the Zacks Consensus Estimate to $8.74 per share. Furthermore, Novartis has demonstrated a consistent ability to outperform expectations, boasting an average earnings surprise of 7.1%. The company's growth prospects are underpinned by a strong and diverse drug portfolio, with key products such as Kesimpta, Pluvicto, Scemblix, Kisqali, Leqvio, and Fabhalta expected to be significant revenue drivers. Novartis continues to strengthen its presence in core therapeutic areas including cardiovascular, renal and metabolic, immunology, neuroscience, and oncology across key global markets like the United States, China, Germany, and Japan.

Key Decisions for Investors

• Investors with a momentum-focused strategy should consider Novartis (NVS) given its Zacks #2 (Buy) rank, 'A' VGM Score, 'B' Momentum Score, and recent 8.6% share price appreciation, supported by positive earnings estimate revisions.
• The company's strong drug pipeline, featuring high-growth potential products like Kesimpta and Pluvicto, and a consistent 7.1% average earnings surprise, suggest fundamental support for its current valuation and future growth, warranting further due diligence for potential inclusion in portfolios.
• It is advisable to monitor ongoing analyst earnings estimate revisions and news flow related to NVS's key drug developments, as these will be critical indicators for sustaining its growth trajectory and stock performance.