| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $54.30 | 240.04B | 3.91 | 2.95% | Healthcare | 78,387 | 9 hours ago | |||
| $705.44 | 632.40B | 15.33 | 0.85% | Healthcare | 47,000 | 9 hours ago | |||
| $25.69 | 2.89B | 1.54 | 0.00% | Healthcare | 45 | 9 hours ago |
Easily one of the biggest trends right now in the field of medicine is the weight loss drug surge. Without attempting to sound cynical, the reality is that the sector enjoys a massive total addressable market. According to Axios, almost 115 million U.S. adults and children are obese. Prior efforts to address this situation have failed, leading to where we are now: a viable ecosystem for weight loss stocks.
Now, I’m no doctor and I’m not even going to pretend that I’m in any position to provide medical advice. This is absolutely not my area of expertise. However, it’s reasonable to state that every effort should be made to address obesity through natural means: dieting and exercising come quickly to mind. However, the pharmaceutical approach has merit.
If obese individuals continue to gain weight, it could lead to serious health consequences, such as diabetes and heart disease. Stated differently, the medicinal pathway is the lesser of two evils. And on that note, below are weight loss stocks to consider.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
Novo Nordisk (NVO): 14.1% Potential Gains with Groundbreaking Wegovy
Overview:
Based in Denmark, Novo Nordisk (NYSE:NVO) represents one of the top biotech firms in the world. Primarily, the company operates in two segments: rare diseases and diabetes and obesity care. Naturally, NVO stock has recently gained tremendous attention for the latter unit.
Product Spotlight on Wegovy:
Novo Nordisk’s weight loss wonder drug, Wegovy, has taken the market by storm. The drug, notable for maintaining weight loss for an unprecedented four years, stands out as a significant milestone in weight management solutions. Such a breakthrough doesn’t just promise immediate results; it ensures sustainable, long-term health benefits.
Financial Performance:
Financially, Novo encountered a hiccup in the second quarter, when it posted earnings per share (EPS) of 63 cents. This figure missed the consensus view of 65 cents. However, results improved from Q3 onward. Over the past year from Q1 2024, Novo generated an average EPS of 72 cents. This figure beat the collective consensus view of 69 cents, yielding an earnings surprise of 3.9%.
Valuation and Investment Appeal:
Right now, NVO stock trades hands at 16.8X trailing-year sales. That’s pricey. Plus, in the past year, the metric sat at 14.88X. However, analysts are also targeting fiscal 2024 sales to hit $42.33 billion, up 27.8%. Therefore, NVO still ranks among the top weight loss stocks to consider. While NVO stock does trade at a premium valuation, these numbers are justified given its significant growth potential. Investors should consider Novo Nordisk for its compelling combination of groundbreaking product efficacy and financial recovery, underscoring its pivotal role in addressing global health challenges.
Analyst Ratings and Forecasts:
| Metric | Value |
| Consensus Rating | Overweight |
| Average Price Target | $73.44 |
| Potential Gain | 14.1% |
| Number of Ratings | 22 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on Novo Nordisk, with a consensus rating of Overweight. The average price target of $73.44 suggests a potential gain of 14.1% from the current price. The company’s strong pipeline and growing sales of its diabetes and obesity treatments are expected to drive growth. Additionally, Novo Nordisk’s diversified product portfolio and expanding presence in emerging markets are seen as positives. However, some analysts have expressed concerns about increasing competition in the diabetes market and the potential impact of pricing pressure on the company’s margins.
Sources: Bloomberg, Refinitiv, Yahoo Finance, TipRanks
Eli Lilly (LLY): Dominance through Zepbound Innovation
Company Snapshot:
Headquartered in Indianapolis, Indiana, Eli Lilly (NYSE:LLY) is another top enterprise in healthcare, falling under the drug manufacturing industry. The company discovers, develops and markets a wide range of human pharmaceuticals. However, it has attracted the spotlight for its diabetes and obesity unit.
Zepbound’s Unique Proposition:
Specifically, the company has developed Zepbound for obesity. As America’s waistline expands, Eli Lilly will likely see revenue streams in related units rise, making LLY one of the attractive weight loss stocks. The drug underscores the company’s commitment to addressing critical health issues and demonstrates an acute understanding of market needs.
Financial Triumphs:
Financially, the company stands on fertile ground. In the past year since Q1, it generated an average EPS of $1.82. This figure handily beat the consensus average view of $1.63, yielding an earnings surprise of 50.15%.
Valuation Insights:
LLY stock’s high valuation of 20.22X sales might seem steep, but its impressive growth trajectory more than justifies the price. For context, in the past year, the metric came in at 17.8X. However, analysts also see strong growth in the next two years. By the end of fiscal 2025, EPS could be $17.07 on revenue of $46.9 billion. Last year, the pharma posted EPS of $6.32 on sales of $34.12 billion.
Investment Potential:
With strong financial footing and robust future growth forecasts, Eli Lilly remains a force to be reckoned with in the burgeoning weight loss market. Solid financial footing, impressive earnings surprises, and robust future growth forecasts make Eli Lilly a strong bet in the weight-loss pharmaceutical space.
Analyst Ratings and Forecasts:
| Metric | Value |
| Consensus Rating | Overweight |
| Average Price Target | $313.15 |
| Potential Gain | 14.1% |
| Number of Ratings | 22 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on Eli Lilly and Company, with a consensus “Overweight” rating. The average price target of $313.15 suggests a potential gain of 14.1% from the current price. Analysts are optimistic about the company’s pipeline, particularly its diabetes and oncology franchises, as well as its cost-cutting initiatives.
Sources: Refinitiv, Bloomberg, Yahoo Finance, TipRanks
Viking Therapeutics (VKTX): High-Risk, Explosive Reward Potential
Overview:
One of the most speculative ideas among weight loss stocks, Viking Therapeutics (NASDAQ:VKTX) is ideal for speculators. Viking is a clinical-stage biopharmaceutical firm focused on the development of novel therapies for metabolic and endocrine disorders. They epitomize the high-risk, high-reward dynamic that can make or break an investment portfolio.
Product Pipeline and Potential:
The crown jewel in Viking Therapeutics’ pipeline is VK2735, a drug candidate for obesity treatment, currently in both injectable and oral tablet forms. Early-stage results have shown promise, setting high expectations among analysts and investors alike.
Financial Hurdles and Prospects:
Right now, the company doesn’t have any commercialized medicines. However, hope exists for its anti-obesity pipeline. Much centers on VK2735, which is Viking’s lead candidate. The injection form of the drug appears to show strong results at a quicker rate. There’s also an oral tablet version, though this is still in early stage trials. Unlike Novo Nordisk and Eli Lilly, Viking is a developmental-stage company not yet generating revenue. Despite this, its financial scenario isn’t dire—losses have been narrower than expected, reflecting cautious yet hopeful investment sentiment.
Speculative Yet Promising:
It’s this blend of uncertainty and potential that makes Viking Therapeutics intriguing. Widely regarded with a unanimous strong buy rating from analysts, the company offers a speculative yet potentially explosive opportunity for investors willing to bet on the success of its developmental drugs.
Why Consider Viking?
Though fraught with risk due to its developmental stage and revenue absence, Viking presents a high-upside play. If VK2735 or any of its other promising drugs succeed, the returns for early investors could be substantial. Therefore, it’s one of the high-risk, high-reward weight loss stocks to keep on your radar.
Analyst Ratings and Forecasts:
| Metric | Value |
| Consensus Rating | Buy (4.5/5) |
| Average Price Target | $14.33 |
| Potential Gain | 134.1% |
| Number of Ratings | 7 |
Summary of Analysts’ Outlook:
Analysts have a strong positive outlook on Viking Therapeutics, with a consensus rating of Buy (4.5/5). The average price target of $14.33 suggests a significant potential gain of 134.1% from the current price. This optimism is likely driven by the company’s promising pipeline of therapies, including VK2809, a potential treatment for hypercholesterolemia and fatty liver disease.
Sources: TipRanks, Yahoo Finance, MarketWatch, Benzinga
These three companies each offer unique opportunities within the weight loss market, from the steady giants with established track records like Novo Nordisk and Eli Lilly to the speculative, high-upside play in Viking Therapeutics. As the demand for effective weight-loss treatments continues to rise, keeping a close eye on these stocks could be a move that pays off handsomely.
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