We recently published a list of 10 Best Beaten Down Stocks to Buy According to Analysts. In this article, we are going to take a look at where Novo Nordisk A/S (NYSE:NVO) stands against other best beaten down stocks to buy according to analysts.
JPMorgan released a market update where it highlighted the US Fed’s recent decision to keep the rates unchanged. Also, the US Fed decreased the growth forecasts and increased the near-term inflation expectations. The futures markets are pricing 2 interest rate cuts this year and a ~50% chance of the third cut. Jose Torres, Senior Economist at Interactive Brokers, believes that stocks are being impacted as slowdown worries continue to pressure the outlook for broader corporate earnings growth. According to him, investors continue to pile up shares in the defensive consumer staple, utilities, and healthcare segments and the real estate and energy areas.
What Lies Ahead as Q1 2025 Approaches its End?
Reuters reported that analysts have been turning more cautious about the US corporate earnings for Q1 2025, as Trump’s policies continue to threaten to trigger a global trade war that can impact the broader economic growth. Reuters, while quoting Tajinder Dhillon (senior research analyst at LSEG), noted that S&P 500 forecasts for Q1 2025 have declined by 4.5 percentage points since January 1. Notably, this has been the largest downward revision since Q4 2023.
The earnings growth for the S&P 500 companies is expected at 7.7% YoY, marking the lowest since Q3 2023 as well as a significant decline from 17.1% in Q4 2024. The worries related to the import tariffs and retaliation by US trade partners, together with the government cutbacks, can push the broader economy into recession have witnessed an increase over the past few weeks, reported Reuters.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
What’s Next for the S&P 500?
CNBC, while quoting Scott Wren (senior global market strategist at the Wells Fargo Investment Institute), stated that numerous uncertainties can negatively impact the broader stock market, such as tariffs as well as a potential rebound in inflation. Furthermore, an increase in bond yields can also pose a headwind, as per Wren. Notably, increased yields can impact the demand for US stocks.
That being said, a favorable backdrop of healthy economic growth and consumer spending, together with relatively low unemployment, can help the S&P 500 to deliver ~12% in 2025. As per Wren, this would be marginally higher than the long-term historical average. The strategist thinks that the investors are required to be optimistic.
Amidst these trends, let us now have a look at the 10 Best Beaten Down Stocks to Buy According to Analysts.
Our Methodology
To list the 10 Best Beaten Down Stocks to Buy According to Analysts, we used a screener and shortlisted the stocks that are trading close to their respective 52-week lows and that analysts see significant upside to. Next, the stocks were arranged in ascending order of their average upside potential, as of March 21. We also mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A closeup shot of a laboratory technician handling a medical device used for fertility treatments.
Novo Nordisk A/S (NYSE:NVO)
Stock Price as of March 21: $76.86
Average Upside Potential: ~62.9%
52-week Low: $71.63
Number of Hedge Fund Holders: 64
Novo Nordisk A/S (NYSE:NVO) is engaged in the research and development, manufacture, and distribution of pharmaceutical products. The company completed the acquisition of the 3 Catalent sites, and during FY 2024, it progressed its R&D pipeline, including obesity projects like CagriSema and amycretin. In 2025, Novo Nordisk A/S (NYSE:NVO) remains focused on commercial execution, the progression of its early and late-stage R&D pipeline, and the expansion of the production capacity. The company also plans to drive operational efficiencies throughout the value chain to enable investments in future growth assets. It believes that investments throughout the full manufacturing value chain are expected to increase patient reach towards 2030.
Novo Nordisk A/S (NYSE:NVO) remains optimistic about the closing of the acquisition of 3 fill-finish sites. This acquisition is expected to help expand capacity further and will help it reach more patients with current and future treatments. Furthermore, the acquisition can enable faster expansion of manufacturing capacity at scale while offering future optionality and flexibility. Overall, it will gradually increase Novo Nordisk A/S (NYSE:NVO)’s fill-finish capacity from 2026 and onward.
ClearBridge Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Similarly, we used a temporary price dislocation caused by disappointing clinical trial results to purchase shares of Novo Nordisk A/S (NYSE:NVO), a Danish-based leader in diabetes and obesity treatments. Novo’s Wegovy semaglutide drug was first to market among the new generation of obesity drugs; however, the company has lost market share to portfolio holding Eli Lilly due to delays in scaling up production volumes and superior weight loss results demonstrated by Lilly’s trizepatide drugs. While the initial market reaction to Novo’s more enhanced CagriSema weight loss treatment was negative, we believe this is a more potent formulation that can better compete with Lilly’s suite. With Novo poised to have a better product portfolio and improved supply position, we find the company’s valuation very attractive given the large secular growth trends behind the diabesity market.”
Overall, NVO ranks 1st on our list of best beaten down stocks to buy according to analysts. While we acknowledge the potential of NVO as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
