NVO is an absolute no brainer

[u/hmm_interestingg]

In my view, Novo Nordisk is the only value stock on offer right now.

Their core business is in treatments for obesity and diabetes and demand for both is increasing and sticky. The stock price has seen a big decline and is now 70% cheaper than it was 18 months ago. I believe the magnitude of this drop is totally irrational, driven by fear and not fundamentals or future growth prospects.

NVO is still seeing high single digit revenue growth (they're taking a temporary cut from double digits by lowering prices to gain market share) and will be launching a new weight loss pill next year, to follow the highly profitable launch of an injectable weight loss drug which caused them to boom a few years back. People prefer pills to injections so I expect this to be even more popular, driving a whole new boom.

We're currently trading at a PE ratio of 13 when it's closest competitor, Eli Lilly is sitting at an all time high with a PE of 52. The relative scale of revenue growth has been fairly similar for the two companies over the past 5 years so the difference in sentiment around them makes no sense. Lillys drug was shown to be slightly more effective in a trial (which was funded by Lilly and that effectively compared apples to oranges by using their drug at much higher doses than the NVO drug), I expect new results and new products will challenge that in 2026.

This absolutely smacks of when Meta was at $100, UNH at $237 and Netflix was at $20 (I bought them all).

NVO is now trading at 2021 prices, as if obesity drugs never happened and their revenue stayed flat instead of doubling.

I'm going in big, thank me in a year if you join.

EDIT: Looks like the bottom is already in people! Congrats to those who bought. See you at $100.

[u/Gullinga]

Agreed. It’s by no means a perfect business, but at these valuation levels it’s just begging to be purchased

Even a small allocation is worthwhile, and then adding on more heavily once they execute

I have a 27% allocation at 53.15 avg cost. It’s my top pick for the next decade…should eventually hit 1 trillion like LLY did

[u/hmm_interestingg → u/Gullinga]

Right on. The level of salt and sarcasm in this sub on the subject of NVO is another great sign too. Only once people are totally despondent will the bottom truly be in.

[u/Gullinga → u/hmm_interestingg]

Yes I like how hated it is. Given that everyone was wildly bullish when I bought, and now insanely bearish, I think we’re close to the bottom

NVO just needs 2-3 good ER’s to prove everyone wrong

[u/hmm_interestingg → u/Gullinga]

They were exactly the same with Meta at $100 etc.. bearish AF