AP - Drugmaker Novartis AG posted an 11 percent increase in first-quarter earnings Monday, led by strong sales of its hypertension and cancer treatments.
***NVS is strong fundamentally. 11 percent increase though is something that most investors don't really follow. Estimates for full-year earnings are averaged at 3.33, making this stock rather overvalued considering its growth of merely 11 percent. At this level, it should trade below 33 in order to be a very good buy. Utopian ideal.
Technical conditions for the stock. Moving average tells the run-up going on for the stock. Volume though is rather slow. This rally might not be for the long haul. Today it is down by 0.17% at 57.73. RSI is at 61, but it is still moving up. MACD signalled a buy a week ago. Bollinger bands tell that its activity is volatile, as both bands open up. Fast stochastic warns of a coming approach towards overbought levels.
I'd rather pass on NVS
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