Novo Nordisk Inventory Close to Lows—Time to Purchase the Dip?
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Novo Nordisk A/V NYSE: NVO inventory is testing the persistence of buy-and-hold traders. During the last 5 years, NVO inventory is up greater than 200%. Nonetheless, within the final yr, it’s down over 61% and greater than 43% in 2025. Even within the unstable medical shares sector, that form of underperformance can’t be ignored.
Novo Nordisk A/S TodayNVONovo Nordisk A/S$47.20 -1.61 (-3.30%) As of 08/5/2025 03:59 PM Eastern52-Week Vary$46.90▼$139.74Dividend Yield3.47percentP/E Ratio13.96Price Goal$93.67
However what’s making shareholders anxious proper now’s the corporate’s latest slash of full-year steering, which prompted the inventory to drop by 3% in lower than every week.Get Novo Nordisk A/S alerts:Signal Up
Novo Nordisk reduce its gross sales progress expectations to a spread of 8% and 14%. The excessive finish of that vary is now according to the low finish of the earlier steering of 13% to 21%. The same story emerged with the corporate’s revised steering for working revenue, which is now in a spread of 10% to 16%, down from 16% to 24%.
Nonetheless, much less progress continues to be progress, and at a time when many shares appear overvalued, NVO inventory doesn’t. Nonetheless, is it time for long-term traders to shed NVO inventory?
A New CEO Faces a Acquainted Drawback
Novo Nordisk lately introduced the appointment of a brand new chief government officer (CEO), Maziar Mike Doustdar, who formally takes the reins on August 6. One of many first issues Doustdar faces is the persevering with menace from compounded GLP-1 medication which can be consuming away on the firm’s market share and progress. That is significantly evident within the surge in Hims & Hers Well being Inc. NYSE: HIMS in 2025.
Whereas compounded GLP-1s are undoubtedly a difficulty for the corporate’s progress, they are not the one challenge. Novo Nordisk additionally cited “lower-than-expected penetration” in worldwide markets and the competitors from Eli Lilly & Co. NYSE: LLY, which continues to make beneficial properties in medical efficacy and market share.Advert American AlternativeMarket Crash Warning: Learn how to Defend Your Wealth Earlier than August 12thChina tariffs hit August 12—and consultants warn a market meltdown could comply with.nnA free information from American Various Belongings reveals 3 pressing strikes to guard your portfolio, plus the #1 asset class thriving throughout crises (trace: it’s not shares or bonds).Get your FREE Tariff Crash Escape Plan now’;ad_container.fashion.peak=”auto”;}},3000);
Vital Weight Loss Comes at a Worth
Compounded GLP-1 medication aren’t a brand new downside. Novo Nordisk and Eli Lilly have been going through this challenge nearly since they launched their GLP-1 medication.
The first challenge is price. Most insurance coverage firms will cowl Ozempic (Novo Nordisk) and Mounjaro (Eli Lilly). These medication are accredited for the remedy of Sort-1 diabetes (T1D), particularly glycemic management. Since diabetes is a power situation, insurers view these medication as according to clear requirements of care.
Insurance coverage protection is much less constant for Wegovy and Zepbound, that are the businesses’ respective GLP-1 medication for weight problems. A extra outstanding hazard is that Medicare doesn’t cowl these medication.
With out insurance coverage protection, these medication may be cost-prohibitive, which makes compounded GLP-1 medication an alternate for sufferers in search of the advantages of those medication. Often, compounded GLP-1 medication may be obtained for 50%-70% lower than the branded merchandise.
Nonetheless, one other challenge is why the compounded medication are in the marketplace to start with. The overwhelming reputation of those medication in a larger-than-expected addressable market was better than Novo Nordisk or Eli Lilly may deal with.
That allowed the Meals & Drug Administration (FDA) to declare a scarcity, allowing the authorized compounding of GLP-1 medication below sure situations. Nonetheless, this isn’t the identical as FDA approval—a distinction Novo Nordisk emphasizes. Compounded variations carry dangers, a lot of which stay laborious to quantify.
Novo Nordisk has filed 9 lawsuits to attempt to cease the expansion of compounded options, however to date, the corporate will not be seeing any impression, although the FDA informed drug makers to cease producing their compounded merchandise now that the scarcity of merchandise like Wegovy has ended.
Earnings Will Be the Subsequent Leg Up or Down
Novo Nordisk A/S Inventory Forecast Today12-Month Inventory Worth Forecast:$93.6798.45% UpsideHoldBased on 13 Analyst RatingsCurrent Worth$47.20High Forecast$160.00Average Forecast$93.67Low Forecast$57.00Novo Nordisk A/S Inventory Forecast Particulars
No matter facet of the talk traders stand on, it gained’t be lengthy till they get extra readability. Novo Nordisk experiences earnings on August 6 earlier than the market opens. The earnings report ought to reply a easy query, with the inventory down greater than 29% within the final 30 days and over 3% within the final week.
Is the sell-off overdone?
If the corporate’s outcomes exceed expectations or are simply in step with their forecast, traders might need a shopping for alternative. NVO inventory is now buying and selling round 12x ahead earnings and is buying and selling at a reduction to its historic averages.
That additionally places it at a slight low cost to the sector common.
Throughout sell-offs like this, it’s straightforward to miss fundamentals. Nonetheless, Novo Nordisk continues to be a really worthwhile firm, growing income and earnings year-over-year (YOY).
Traders must also keep in mind that the marketplace for Ozempic and Wegovy is huge, which can permit room for a lot of firms to compete.
Nonetheless, within the close to time period, the corporate and traders might want to work by way of short-term obstacles. NVO inventory is buying and selling effectively beneath its 50-day easy shifting common (SMA), which has already been an space of resistance for the inventory. Nonetheless, the promoting quantity seems to be truly fizzling out, and with an RSI indicating oversold situations, a backside could also be forming.
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Editor & Contributing AuthorValue Investing, Retirement, Dividend Shares, Particular person Investing
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