AMGN - Novo Nordisk: The Market Is Right Don't Fight Against It
2024-05-28 08:30:00 ET
Summary
- Novo Nordisk stock has easily outperformed the market over the past year.
- Novo Nordisk's growth potential through its weight loss drugs is expanding.
- Competition from rivals like Eli Lilly and Amgen could impact demand and pricing dynamics in the medium term.
- However, when considering its forward adjusted PEG ratio, NVO stock isn't valued expensively.
- I explain why I was wrong about Novo Nordisk's growth potential. Never fight against the market.
Novo Nordisk Stock Continues Outperforming
Novo Nordisk ( NVO ) investors have continued to defy gravity, highlighting its incredibly robust buying sentiments. I have been cautious about NVO over the past six months as I reassessed my Hold thesis on NVO stock. I admit I did not anticipate NVO to continue taking out new highs with no red flags highlighting caution. Therefore, my caution over NVO's premium valuation hasn't panned out, as market growth potential and execution have been remarkable. Consequently, Novo Nordisk stock's outperformance could resume if buyers break decisively above the pivotal $138 resistance level (March 2024 highs)....
Novo Nordisk: The Market Is Right, Don't Fight Against It