We recently published a list of 10 Stocks Market Experts are Talking About These Days. In this article, we are going to take a look at where Novo Nordisk A/S (NYSE:NVO) stands against other stocks that market experts are talking about these days.
Piper Sandler’s Chief Market Technician Craig Johnson said in a latest program on CNBC that despite the recent market volatility and “negative” headlines, he sees buying opportunities for long-term investors.
“The headlines out here are extremely negative all over the place and the sentiment toward this market is absolutely awful. Typically, you find these readings near sort of bear market lows, which is what you typically see. And if you also start to look at the VIX, it is elevated out here at this point in time. Now, technically we have broken some uptrends, we’ve closed below 50 and 200-day moving averages, but we’re getting to some pretty washed-out levels. I started looking at new highs, new lows, breadth indicators, and all these pieces. And we’re starting to get to levels where you look back and say, “Is this 1989? Is this a period of time that’s like the great financial crisis or the ’87 market crash?” And I think the answer to that is flat out no. So, we’re setting ourselves up for, I think, a potentially pretty good buying opportunity. All this negativity, and again, as Warren Buffett has said, you’ve got to be greedy when people are fearful. When people are greedy, and definitely a lot of fear out here, that seems to me to be a little bit misplaced on the charts.”
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For this article, we picked 10 stocks notable Wall Street analysts were discussing over the past few days. With each company we have mentioned the latest hedge fund sentiment. 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).
An elderly couple receiving insulin from a pharmacist, representing healthcare company’s successful pharmaceutical products.
Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Funds Investors: 61
Jared Holz from Mizuho said in a latest program on CNBC that he thinks Novo Nordisk A/S (NYSE:NVO) selloff is overdone.
“It’s been horrifying to watch—it’s basically been cut in half since last summer. They had that big analyst day that excited the street, and now we’re sitting at multi-year lows. It feels fair and not fair. The news flow out of the company and the field has impacted it dramatically, so in some respects, yes. But they’re still going to grow 15 to 20% this year, and it’s a growth entity for the next few. When you compare it to some of the other names in pharma, it’s amazing. I was talking to some investors today, and I think the sentiment on Novo is the worst among all large-cap pharma.”
The analyst talked about the Street’s reaction to Novo Nordisk A/S (NYSE:NVO) weight-loss drug:
“They’re going to be the market leader. I still believe it’s a two-player market in this injectable market for the foreseeable future, if for no other reason than the cost involved—the manufacturing spend and all of those things. It’s interesting because the CagriSema data didn’t really excite the street, yet they’re excited about this Roche plus Zealand asset, which is essentially the same thing as CagriSema, but investors like it. So, I think we’ve kind of gone so far in terms of the pendulum swinging out of their favor that maybe you’re right, Karen—it’s time to buy a little bit.”
ClearBridge Large Cap Growth Strategy stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its Q4 2024 investor letter:
“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 7th on our list of stocks that market experts are talking about these days. While we acknowledge the potential of NVO, our conviction lies in the belief that under the radar 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.
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Disclosure: None. This article is originally published at Insider Monkey.
