10 Cheap Pharmaceutical Stocks to Buy According to Analysts

1. Novo Nordisk A/S (NYSE:NVO)

Price Target Upside: 81.93% 

Novo Nordisk A/S (NYSE:NVO) is recognized as a global healthcare company specializing in diabetes care. The two business segments that comprise its operations are biopharmaceuticals and diabetes and obesity care. GLP-1, insulin, and other products related to proteins are covered in the latter section. In the GLP-1 weight reduction industry, Novo Nordisk A/S (NYSE:NVO) and Eli Lilly are the two main pharmaceutical companies that compete.

The company is developing a new oral weight reduction tablet that, if approved, may revolutionize the market, even though both companies have authorized weight loss medications that dominate the market with billions of dollars in revenue. In the upcoming months, Novo Nordisk A/S (NYSE:NVO) intends to submit a regulatory approval application for its oral weight reduction medication in the United States, according to CEO Lars Fruergaard Jørgensen. If the business gets approved, it might be able to start selling the medication as early as next year, which is also when Eli Lilly intends to introduce its medication for weight reduction.

Aside from any excitement for this oral medication for weight loss, Novo Nordisk A/S (NYSE:NVO) is operating on solid foundations. The corporation had a successful fiscal year in 2024, as its sales increased by 25% to $40.6 billion. In August, it paid out an interim dividend of DKK 3.50, increasing its total dividend per share by 21.3% to DKK 11.40. For the 29th year in a row, NVO has increased its dividend. At constant currency rates, Novo Nordisk A/S (NYSE:NVO) anticipates a free cash flow of approximately DKK 75 to 85 billion and revenue growth of 16–24% in 2025.

Overall, NVO ranks first among the 10 cheap pharmaceutical stocks to buy according to analysts. While we acknowledge the potential of NVO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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