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Bear of the Day: Novo Nordisk (NVO)

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Key Takeaways

  • After 4 years of soaring sales and profits, analysts are estimating a big flat period
  • This could shift on FDA approval for oral Wegovy, the first GLP-1 obesity pill in the US
  • Right now, 8 covering analysts have an average PT of $52, and a high/low of $70/$42

Novo Nordisk ((NVO - Free Report) ) is a global healthcare company and a prominent player in the diabetes market with a full portfolio of glucagon-like peptide 1 (GLP-1) receptor agonists, modern insulins and human insulins. Based in Bagsværd, Denmark the company is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity.

Wegovy, Novo Nordisk’s blockbuster obesity product, was approved by the FDA in June 2021. Since then, the drug has undergone several label expansions and helped explode Novo sales by more than double in four years, from under $23 billion to nearly 48 billion.

Profits also surged 125% during the same period, from $1.65 to $3.82 on a 12-month trailing basis.

The reason this terrific growth story is a Zacks #5 Rank is that Wall Street analysts have dropped their estimates for the earnings outlook with 2025 full-year consensus falling from $3.84 to $3.57 in the past 90 days. 

2026 full-year EPS concurrently fell from $3.95 to $3.51, representing a 1.8% annual decline.

All this despite a big 32% earnings beat on Nov 5 and FDA approval for oral Wegovy, the first GLP-1 obesity pill in the U.S. You can learn more about that development in this article, which also addressed competitive threats from smaller biotech players...

NVO's First Oral Obesity Pill Approval: What Does it Mean for Lilly?

Another stock experiencing high volatility due to the diet-drug wars is Hims & Hers (
(HIMS - Free Report) ). They are not a drug-maker but a consumer delivery platform that seems to have on-again, off-again access to the competing drugs because of regulatory influence from the giant pharma companies.

HIMS shares have plummeted 45% from a close above $60 in October to $34. You can learn more about their recent cross-roads here...

Hims & Hers Expands Subscription-Led Care as Platform Engagement Grows

In conclusion, even the Wall Street spreadsheet jockeys don't have a firm handle on this evolving market with 8 covering analysts dispersing their price targets for NVO to an average of $52 (where the stock is now), and a high/low of $70/$42.

Maybe the best move right now for investors is to be like Tim "Apple" and buy something on sale that also helps with obesity: Nike, the weight-loss shoe.


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