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Morning Hot Stocks: Novartis AG, (NVS)

Friday February 24th 2017: Novartis AG, NVS is in the exchange NYSE and its industry is Drug Manufacturers – Major in the sector of Healthcare. Based in Switzerland, Novartis AG, NVSĀ  has a market cap of 211.49 B. Since its IPO date on the 11/07/1996, Novartis AG, NVS performance year to date is 10.97%. Today Novartis AG, NVS has gained 0.47%, with a current price of 80.83.

Ownership of the company is 9.30% for insider ownership while institutional ownership is 11.30%. The management of the company have seen the company have a payout ratio of 101.50%. Return of assets are at 4.80%, with return on investment at 7.30%.

In terms of debt levels and profit levels, Novartis AG, NVS is seeing a long-term debt/equity of 0.34. While Total debt/equity is 0.46. With a profit margin of 12.90%, this is combined with a gross margin of 65.30%, and operating margin of 15.50%. Novartis AG ability to meet debt levels, with a current ratio of 1, while the quick ratio is 0.7.

For the last year Novartis AG, NVS has seen a EPS growth of -2.80%. A performance for the year of 5.12%. The 52-week high is -3.29%, and the 52-week low is 20.77%. The average volume for Novartis AG, NVS is 1798735.

With a target price of 85.75, can Novartis AG, NVS reach this target? Looking at the value indicators of Novartis AG, NVS. Novartis AG has a P/E of 30.43 and a forward P/E of 15.66. Perhaps the more useful indicator than P/E, is PEG which has a value of 5.52. Novartis AG also has a P/S and a P/B of 4.28 and 2.84 respectively. For P/cash, Novartis AG has a value of *TBA, while it is 81.97 for P/free cash flow.

At the current price of 80.83, Novartis AG has a dividend yield of 3.37%. We see a return on equity of 8.80%.

Looking more long-term Novartis AG, is projected to get an EPS growth for the next five years of 5.52%. In the short-term an EPS growth of 10.01% in the next year is forecasted. This is after a EPS growth of -2.80% for this year and for the last five years a -5.80% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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