"Novartis Near Buy Point; Earns Near-Best Overall Rating"

Novartis (NVS) is making waves in the pharmaceutical industry, and investors are taking notice. The Swiss multinational pharma giant has seen its IBD SmartSelect Composite Rating jump to 96, just shy of the best possible score of 99. This surge from 93 the day before indicates that Novartis is outperforming 96% of all stocks in terms of fundamental and technical stock-picking criteria. But what does this mean for investors, and is Novartis a good stock to buy right now?



Novartis is currently forming a cup with handle base, with a 112.98 buy point. The stock is trading just below this level, and investors are watching closely for a breakout in volume at least 40% above average. On Wednesday, the drugmaker rose fractionally to 111.88, inching closer to its buy point. The company's strong performance is reflected in its EPS Rating of 89, which means its recent quarterly and longer-term annual earnings growth is outpacing 89% of all stocks. Its Accumulation/Distribution Rating of A shows heavy buying by institutional investors, such as mutual funds and pension funds, over the last 13 weeks.

But Novartis isn't just a strong performer on paper. The company posted a 29% increase in earnings for Q4, to $1.29 per share. That marks two straight reports with rising EPS growth. Sales increased 15% year over year to $13.6 billion, up from 9% growth the prior quarter. Novartis is expected to report first quarter results on or around April 29, and investors are eagerly awaiting the news.

Novartis' strong performance is also reflected in its market position. The company earns the No. 1 rank among its peers in the 33-stock Medical-Ethical Drugs industry group. Phibro Animal Health (PAHC) and Jazz Pharmaceuticals (JAZZ) are also among the group's highest-rated stocks. This leadership position is a testament to Novartis' strong balance sheet, diverse revenue stream, and commitment to innovation.

But Novartis isn't without its challenges. The company is in the midst of a long-winded transition phase, which is set to culminate in the upcoming spin-off of the generic drug unit, Sandoz, later this year. This makeover is expected to position Novartis as a pure-play prescription drug company, which could enhance market perception and long-term growth prospects. However, the spin-off also comes with risks, including potential generic competition for key drugs like Entresto and Cosentyx.

Despite these challenges, Novartis remains an enticing dividend stock for conservative investors. The company offers an attractive dividend program, which currently yields 3.6% on an annualized basis. Management has shown a strong commitment to paying an elite dividend since the company's inception, and Novartis announced its 26 consecutive annual-dividend increase earlier this year.

In conclusion, Novartis is a strong performer in the pharmaceutical industry, with a high IBD SmartSelect Composite Rating, strong EPS growth, and a commitment to innovation. The company's upcoming spin-off of Sandoz presents both opportunities and risks, but Novartis' strong balance sheet and diverse revenue stream position it well for long-term growth. For investors looking for a solid dividend stock with strong growth prospects, Novartis is definitely worth considering.