10 Most Promising Biotech Stocks According to Hedge Funds

1. Novo Nordisk A/S (NYSE:NVO) 

Average Upside: 33.15%

Number of Hedge Fund Holders: 67

Novo Nordisk A/S (NYSE:NVO) is a global healthcare company based in Bagsværd, near Copenhagen, Denmark. It focuses on treatments for obesity, diabetes, and other rare diseases. With a presence in over 168 countries and a workforce of 48,000 employees, Novo Nordisk’s well-known products include Ozempic, Rybelsus, and Wegovy.

Novo Nordisk A/S (NYSE:NVO) had a strong start to 2024, reporting a notable 25% increase in sales and a 19% rise in operating profits during the first half of the year. This performance was largely driven by a 32% surge in GLP-1 diabetes product sales, along with a 10% growth in insulin sales, particularly in North America.

TD Cowen reiterated its Buy rating on Novo Nordisk A/S (NYSE:NVO) shares, setting a price target of $155 on October 7. The firm’s positive outlook is based on Novo Nordisk’s innovative strategies and strong leadership, which are expected to drive above-average growth. Its dominant position in the expanding diabetes market further supports this projection. Additionally, TD Cowen emphasized the strength of the company’s product pipeline, which is poised to deliver new treatments and fuel continued growth.

Insider Monkey’s data for Q2 2024 revealed that 67 hedge funds held investments in Novo Nordisk A/S (NYSE:NVO), an increase from 60 in the previous quarter.

While we acknowledge the potential of biotechnology companies, 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’re seeking an AI stock with even more promise than NVO and trading at less than 5 times its earnings, check out our report about the cheapest AI stock.

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