We recently published a list of 10 Best Stocks to Buy and Hold For 2025. In this article, we are going to take a look at where Novo Nordisk A/S (NYSE:NVO) stands against other best stocks to buy and hold for 2025.
Stocks have been performing well lately as they seem to have been influenced by the excitement around artificial intelligence (AI) as well as the new administration. CNBC reported that stocks rose on January 22, with the S&P 500 hitting a new all-time high, as technology stocks rallied on AI optimism and President Trump’s new term in office.
On Wednesday, January 22, stocks finished higher as all 3 of the major indexes ended the session in the green. The S&P 500 increased by 0.61% after reaching an intraday record of 6,100.81 before closing at 6,086.37. The Nasdaq Composite excelled and rose 1.28% to reach 20,009.34, underscoring the outperformance of tech stocks. The Dow Jones Industrial Average advanced by 130.92 points, or 0.3%, to close at 44,156.73.
READ ALSO: 10 Best Low Priced Technology Stocks To Buy Now and 10 Best Sin Stocks to Invest in 2025.
President Trump also recently announced a joint venture named “Stargate,” involving OpenAI, Oracle, and Softbank, to invest at least $500 billion in AI infrastructure within the US. Stocks rose because of solid earnings reports and investors continued to pile into the AI space following this recent announcement by the new administration.
Keith Lerner, Truist’s co-chief investment officer, pointed out that a combination of a resilient economy, easing inflation, stabilizing of interest rates, and a strong start to the earnings season has created a favorable environment for the market. He noted that AI and technology continue to be key drivers of this bull market.
Another key factor playing a role in this market rally is the optimism around Trump’s agenda. Investors are hoping that Trump will ease regulations and reduce corporate taxes, which could lead to an increase in profits.
Methodology
To compile our list of the 10 best stocks to buy and hold for 2025, we used the Finviz stock screener to look for stocks that analysts believe will gain more than 30% in the next 12 months. We sorted our results based on market capitalization and picked the top 25 stocks. Finally, we ranked the 10 best stocks to buy and hold for 2025 based on their average price target upside potential according to analysts as of January 22, 2025. Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An elderly couple receiving insulin from a pharmacist, representing healthcare company’s successful pharmaceutical products.
Novo Nordisk A/S (NYSE:NVO)
Average Price Target Upside Potential According to Analysts: 82.19%
Number of Hedge Fund Holders: 61
Novo Nordisk A/S (NYSE:NVO) is a Danish multinational pharmaceutical company that ranks among the best stocks to buy and hold for 2025 according to analysts. With a focus on diabetes, obesity, rare diseases, and cardiovascular conditions, the company markets its products and services in around 170 countries.
In its Q3 2024 investor letter, PGIM Jennison Health Sciences Fund noted that Novo Nordisk A/S (NYSE:NVO) is one of the fastest-growing biopharma companies in the world with transformative new drugs in large and growing markets like diabetes and obesity. The fund also pointed out that the company’s potential for growth from new products is not fully appreciated. Novo Nordisk A/S (NYSE:NVO) has a strong research and development engine that has proved to be very productive and successful in the past. The company has several programs in diabetes, obesity, non-alcoholic steatohepatitis (NASH), and Alzheimer’s disease that are expected to yield results in the next 3-4 years. PGIM Jennison Health Sciences Fund believes that the stock will continue to outperform and its performance is expected to be driven by the company’s next-gen obesity and diabetes drug, CagriSema, and by improvements in supply through organic growth as well as inorganically through the Catalent acquisition.
The company is strategically focused on expanding its manufacturing capabilities through investments and acquisitions. In December 2024, Novo Nordisk A/S (NYSE:NVO) announced that it plans to invest DKK 8.5 billion to develop a new production facility in Odense, Denmark. Construction has begun and the new site is planned to be completed in 2027. Additionally, on December 18, 2024, Novo Nordisk A/S (NYSE:NVO) completed its acquisition of three manufacturing sites in connection with the agreement to acquire Catalent.
Overall, NVO ranks 1st on our list of best stocks to buy and hold for 2025. While we acknowledge the potential of NVO, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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
Disclosure: None. This article is originally published at Insider Monkey.
