Novo Nordisk AS (NYSE:NVO) will report third-quarter earnings on Wednesday. Wall Street expects 88 cents in EPS and $10.49 billion in revenues when the company reports after market hours.

The stock is up 8.55% over the last year and 7.45% year-to-date.

Let's look at what the charts indicate for Novo Nordisk stock and how the stock maps against Wall Street estimates.

Novo Nordisk Stock Chart Bearish Ahead Of Q3 Earnings

Novo Nordisk's stock is showing strong bearish momentum, as its price of $108.76 sits below its five- 20- and 50-day exponential moving averages. This downward trend is accompanied by persistent selling pressure, suggesting potential for continued bearish movement.

Chart created using Benzinga Pro

With an eight-day simple moving average (SMA) of $111.67, a 20-day SMA of $115.16 and a 50-day SMA of $123.13 — all above the current price — technical indicators point to a bearish signal for NVO stock.

Additionally, the 200-day SMA at $128.29 further underscores the bearish outlook.

The Moving Average Convergence Divergence (MACD) indicator at a negative 3.44 signals downside momentum, while a Relative Strength Index (RSI) of 25.06 indicates oversold conditions, hinting that NVO stock may face further declines without substantial support or a shift in buying interest.

Read Also: Popular Weight Loss Drug Wegovy Shows Encouraging Results in Liver Fibrosis Trial

New Partnership For Longer-Acting GLP-1 Drugs

In a significant move to broaden its portfolio, Novo Nordisk has entered into a $285 million agreement with Denmark-based Ascendis Pharma AS (NASDAQ:ASND). This partnership grants Novo exclusive worldwide rights to Ascendis' TransCon technology, aiming to develop once-monthly GLP-1 receptor agonists for Type 2 diabetes and obesity — a step up from its weekly GLP-1 drugs.

The alliance also covers cardiovascular diseases, with Novo retaining the option to expand future metabolic treatments into additional therapeutic areas. Ascendis will lead early-stage development, while Novo handles the regulatory, manufacturing, and commercial phases.

The lead program in the partnership is a once-monthly GLP-1 drug, a potential game-changer for patients with metabolic disorders. Novo's recent clinical studies underscore the broader health impact of its GLP-1 treatments, showing reduced hospital admissions for heart disease in overweight patients, boosting investor confidence in the potential cardiovascular applications of the new drug.

Novo Nordisk Analysts See 46% Upside

The consensus analyst rating on Novo Nordisk stock stands at a Buy with a price target of $123.86. The latest analyst ratings for Novo Nordisk stock from BMO Capital and Cantor Fitzgerald give an average price target of $158.67, suggesting 45.78% upside potential.

As Novo Nordisk readies to share its third-quarter performance, the dual narratives of bearish technicals and bullish analyst ratings, combined with a groundbreaking new partnership, make the upcoming earnings call a highly anticipated event.

Price Action: Novo Nordisk stock closed the trading day Monday at $109.72, down 1.98%.

• As Race To Best 'Miracle' Obesity Drug Heats Up, Ozempic Maker Novo Nordisk Tests New Hybrid Drug That Can Reduce Weight Up To 25%

Image: Shutterstock