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Novo Nordisk last year cut its guidance and replaced its chief executive.
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The stock has plunged more than 40% in troubling developments.
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Its price-to-earnings ratio is very cheap, well below the 10-year average.
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10 stocks we like better than Novo Nordisk ›
Healthcare stocks haven’t gotten much love from investors in recent years. Although the market has been strong and S&P 500 Index Up 84% over the past five years Healthcare Select Sector SPDR ETF The increase was less than half that, at 36%.
This means that many healthcare stocks are likely to be significantly undervalued heading into 2026. As investors become concerned about high valuations in technology stocks and the broader stock market, they may turn to more moderately priced stocks, such as those in the healthcare sector, that offer There are many more benefits.
The healthcare giants I predict will take off in 2026 are Novo Nordisk (NYSE: NVO).
It’s not been a good year for Novo Nordisk, to say the least. While health care stocks have performed well overall, with the Health Care Select exchange-traded fund up 12% in 2025, Novo Nordisk’s shares have plummeted 44%. The performance of one of the world’s leading healthcare companies has been exceptionally poor.
The company simply hasn’t achieved the levels of growth investors expected. The company has been fighting to prevent compounding pharmacies from selling generic versions of its popular GLP-1 drugs, including Ozempic, a popular diabetes treatment that also helps people lose weight.
That cut into its sales, causing management to lower its guidance for the year. It expects full-year growth of just 8% to 14% (previously 13% to 21%). A particularly big blow is that its top weight loss drug Wegovy is expected to grow only 14% this year, down from the previous forecast of 21%.
Faced with these challenges, the company has also made changes to the CEO position, with Maziar Mike Doustdar now leading the business and succeeding Lars Fruergaard Jørgensen. A change in management could roil the stock, and with all of these developments happening at once, it’s effectively a perfect storm that has sent Novo Nordisk stock into a wild tailspin this year.
Novo Nordisk’s shares have fallen sharply this year and are currently trading around four-year lows. Buying the stock today is almost like buying the company after it received Wegovy approval. The approval came in June 2021, when Novo’s stock price was about $42.
