Is Novo Nordisk a buy?

Novo Nordisk $NYSE: NVO plummets 22% on July 29, wiping out $57.5B in market value!

Here's what's happening and how I see it.

Here’s the breakdown on why the stock hit its lowest since Nov 2022:

Slashed 2025 Guidance: Sales growth cut to 8–14% from 13–21%, operating profit to 10–16% from 16–24%. Weak U.S. demand for Wegovy & Ozempic, plus competition from cheaper compounded GLP-1 drugs (i.e. grey market), cited as key issues.
CEO Shake-Up: Lars Fruergaard Jørgensen out, Maziar Doustdar in as CEO effective Aug 7. Investors worry Doustdar’s limited U.S. experience could hurt Novo’s edge in its biggest market (57% of sales).
Competition: Eli Lilly’s Zepbound (20.2% weight loss vs. Wegovy’s 13.7%) & Mounjaro are stealing market share. Compounded GLP-1s from Hims & Hers add pricing pressure.

Here's what I see:

There's a strong bearish sentiment, but the stock is very underpriced.
Considering the current stock price, EPS is at an all-time high. This means investors get more earnings for their stock.
P/B, P/E, and P/S ratios are at the lowest level since 2017! This is despite revenue growth of 25%+ for 3 consecutive years.
Operating margins are still quite healthy.
The company still has a very significant share (over 50%) of the GLP1 drugs worldwide.
The valuation of this company is now at the best level of the last 7-8 years.

There might be more volatility ahead, but I see the recent price drop as an opportunity to buy a pharma giant at a big discount, giving investors a margin of safety.

Quick note: I'm just sharing my journey - not financial advice! 😊

HenriqueCentieiro

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HenriqueCentieiro

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