Why I'm Not Worried About Novo Nordisk Stock

By David Jagielski, CPA – Mar 2, 2026 at 12:00PM ESTKey PointsInvestors have been dumping shares of Novo Nordisk amid concerns it can't keep up with Eli Lilly.Novo Nordisk is expecting sales to decline this year, potentially by double digits.The stock's valuation looks incredibly low, trading at a price-to-earnings multiple of just 10.Novo Nordisk (NVO 4.74%) stock has been a trainwreck of late. In just the past 12 months, the Danish healthcare stock has lost around 60% of its value. Things have been going from bad to worse for the business. Its guidance hasn't been looking good, and investors are now also concerned about its long-term prospects and ability to compete alongside rival Eli Lilly.

While Novo Nordisk does have an approved GLP-1 weight loss pill on the market, the concern is that its advantage won't last long once Eli Lilly launches its own pill. Despite all the negativity around Novo Nordisk, however, I'm not worried about the business and am still hanging onto the pharmaceutical stock. While seeing all the red may seem unnerving and worrisome, by no means does it mean the business is in trouble. Image source: Getty Images. Why are investors so bearish on Novo Nordisk stock? Novo Nordisk's guidance for the current year is worrisome due to rising competition, as it expects its adjusted sales to decline by at least 5% and it could be as bad as 13%. It projects a similar type of performance for its operating profit. These are concerning numbers that no growth investor wants to see from a stock, hence the sell-off in Novo Nordisk of late. But this is also amid some challenging market conditions when Novo Nordisk is losing sales to pharmacies making compounded versions of its popular drugs. Last month, the healthcare company announced it was suing Hims & Hers Health for selling unauthorized versions of its drugs, which it says infringe on its patents.

If Novo Nordisk is successful in curbing the sale of these compounded drugs, which would normally be permissible only while a shortage persists, then that alone could help strengthen its growth rate this year. ExpandNYSE: NVONovo NordiskToday's Change(-4.74%) $-1.79Current Price$35.97Key Data PointsMarket Cap$127BDay's Range$35.90 - $36.6652wk Range$35.90 - $91.90Volume877KAvg Vol23MGross Margin80.90%Dividend Yield4.57% Novo Nordisk stock can still be an excellent buy over the long haul Investing in a stock involves taking a long-term approach to a business. And it's when investors focus on too narrow a timeframe that they can end up making costly and risky decisions. Novo Nordisk may look like it's facing some daunting challenges today, but it's still a big player in the GLP-1 drug market. Even if you think Eli Lilly has the best products available, the market is estimated to be worth more than $150 billion by 2035; there's plenty of room for multiple companies to do well. Plus, it may not all come down to weight loss. Tolerability is important to users, especially since they'll likely need to take the treatments for the long term. Novo Nordisk's products may still appeal to a significant slice of the market. While the business may not seem to be doing well right now, that doesn't mean it can't or won't be able to recover. And with the stock trading at an incredibly low price-to-earnings multiple of 10, it could be a steal of a deal for long-term investors right now.Read NextFeb 26, 2026 •By Prosper Junior BakinyForget Altimmune: This Proven Obesity‑Drug Giant Is the Better Weight‑Loss PlayFeb 25, 2026 •By Josh Kohn-LindquistStock Market Today, Feb. 25: Novo Nordisk Dips After Announcing $2.1 Billion Partnership With Vivtex for Oral Drug-Delivery TechnologiesFeb 25, 2026 •By Reuben Gregg Brewer1 Reason Why I'd Hold This Weight‑Loss Drug Leader Through Any Market CrashFeb 25, 2026 •By Prosper Junior BakinyCould Novo Nordisk Help Turn $100,000 Into $1 Million in the GLP‑1 Gold Rush?Feb 23, 2026 •By Emma NewberyStock Market Today, Feb. 23: Novo Nordisk Plunges 16% After Obesity Drug Falls ShortFeb 23, 2026 •By Rich SmithWhy Novo Nordisk Stock Just CrashedAbout 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$35.94(-4.82%)-$1.82Eli LillyNYSE: LLY$995.83(-2.17%)-$22.14Hims & Hers HealthNYSE: HIMS$15.55(-5.67%)-$0.94*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.