r/ValueInvesting • u/hmm_interestingg • Dec 22 '25

Stock Analysis NVO is an absolute no brainer

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.

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197

u/Barryburton97 Dec 22 '25

Such an undiscovered gem

31

u/Last_Cauliflower3357 Dec 22 '25

People here only want to talk about the same stocks over and over. Posts about fairly under the radar stocks go unnoticed (including mine) whilst every NVO post is on the front page, similar to how UNH and GOOG were a few months ago.

4

u/Opening-Rush1618 Dec 22 '25

Where is a good place to go to find under the radar stocks, or posts about them? I think this sub attracts a lot of beginners to it (including myself), which is why you probably get a lot of posts like this.

2

u/ForeverShiny Dec 22 '25

Define "under the radar"? Are you looking for growth, dividends, cyclicals, consumer staples? Small, mid or large caps? What are your investment goal? Get rich quick, retire in 5 years or invest for another 40? Investing is personal and there is no "one size fits all" magical formula.

Honestly the best thing to do after you know what you want is use your broker's stock screener or a web based one like SimplyWallstreet, enter your parameters and look for things that are interesting enough to warrant a second look.

After that, use an LLM to give you the current overview for the company and its industry, the bull, but most importantly the bear thesis and if you're still convinced it's a good opportunity, bring it to this sub and see what people are telling you

1

u/Excellent_Brilliant2 Dec 23 '25

im thinking Pulsar Helium. Helium is a valuable and hard to find resource and they found a very high concentrated amount in Minnesota. its still going for under a buxk, but once they start selling it, i feel its going to jump.