Novo Nordisk: Catch That Falling Knife

Summary

• Novo Nordisk's stock has dropped over 20%, but its core business remains strong and diversified, making this an attractive entry point for investors.
• Despite increased GLP-1 competition and lowered guidance, Novo Nordisk continues to grow, expand its market share, and generate robust cash flow.
• The company’s rare disease and oral semaglutide segments are showing promising growth, with a strong R&D pipeline supporting future expansion.
• At current valuations, Novo Nordisk is undervalued relative to its fundamentals and growth prospects, making it a compelling buy despite near-term risks.

David Petrus Ibars/E+ via Getty Images

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.