Down Near Its 5-Year Low, Is Novo Nordisk Stock Too Cheap to Pass Up?

By David Jagielski, CPA – Mar 20, 2026 at 2:00PM ESTKey PointsNovo Nordisk unveiled a troubling guidance for 2026, which tanked the stock.It recently reached a deal with telehealth company Hims & Hers Health to sell its GLP-1 products.The stock is trading at just 10 times its earnings.Shares of Danish drugmaker Novo Nordisk (NVO 1.39%) have been in a full-blown tailspin over the past 12 months. The stock has lost more than half of its value as the company has been delivering some underwhelming results recently, and its guidance isn't looking too promising, either. It's been a bit of a perfect storm that has resulted in Novo Nordisk stock now tumbling to levels it hasn't been at since early 2021. That's even before its weight loss drug, Wegovy, obtained approval from regulators, which was in the summer of that year. To say investors have been bearish on Novo Nordisk would be an understatement. But the big question is, has the bearishness become excessive, and has the healthcare stock become so cheap that it's effectively become a no-brainer buy? Image source: Getty Images. Novo Nordisk may be down, but I wouldn't count it out It's a tough road ahead for Novo Nordisk as the company has a new CEO, and it slashed its guidance for the year ahead. It projects that its revenue could be down by as much as 13% for the current year, even as it has launched a new Wegovy pill. The company is facing pricing pressure, but management believes that by lowering prices, winning over customers, and gaining market share, it could set itself up for better growth in the future. Novo Nordisk has also reached a deal with telehealth company Hims & Hers Health recently to sell its GLP-1 products on Hims' platform, which could help grow sales even further. That announcement came after Novo's troubling guidance, and thus, may result in better growth numbers than feared. ExpandNYSE: NVONovo NordiskToday's Change(-1.39%) $-0.52Current Price$36.56Key Data PointsMarket Cap$125BDay's Range$36.32 - $37.0052wk Range$35.85 - $81.44Volume18MAvg Vol25MGross Margin80.90%Dividend Yield4.66% The stock is a steal, even if you're concerned about its growth prospects The market has a tendency to overprice stocks that are doing well and undervalue ones that are struggling. But that can be good news for long-term investors, because it allows you to lock in a low price for a company that is underperforming. Billionaire investor Warren Buffett has said in the past that he likes to invest in businesses that are in "temporary trouble" simply because it can be highly advantageous to do so, particularly when the market is undervaluing them.

In Novo Nordisk's case, I think the business is facing temporary headwinds, and that it's still a solid company to invest in for the long haul. The stock today trades just 10 times its earnings, which is a dirt cheap multiple for one of the top healthcare companies in the world. At this kind of valuation, you're getting an excellent margin of safety with the investment, and there could be significant upside in the future. Novo Nordisk may be in the midst of a challenging year, but as long as you're willing to stay the course and remain invested for the long term, it can be an excellent buy right now.Read NextMar 19, 2026 •By Prosper Junior Bakiny1 Reason I'm Never Selling Novo Nordisk StockMar 17, 2026 •By David Jagielski, CPAThis Promising GLP-1 Drug Could Give Novo Nordisk Investors Renewed Hope for the StockMar 16, 2026 •By David Jagielski, CPAWhy the Novo Nordisk and Hims & Hers Deal Is a Win for Both StocksMar 12, 2026 •By Prosper Junior BakinyDoes This Deal Make Novo Nordisk Stock a Buy?Mar 9, 2026 •By David Jagielski, CPANovo Nordisk Is Slashing Prices for Ozempic and Wegovy. Here's Why That Might End Up Helping the StockMar 9, 2026 •By Travis HoiumHims & Hers Stock Pops 40%: Everything You Need to KnowAbout the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedNovo NordiskNYSE: NVO$36.48(-1.62%)-$0.60Hims & Hers HealthNYSE: HIMS$23.07(-4.51%)-$1.09*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.