Novo Nordisk (NVO 1.76%) got fantastic news last year when regulators approved its weight loss pill. It's the first oral GLP-1 drug in the market, and it unlocks a huge new growth opportunity for the business. While its injectable drugs have been doing well, a pill can be easier to produce at scale, and it's a more convenient option for people, particularly those who don't want to use needles.
Shares of Novo Nordisk have been flying out of the gate in 2026 and they're up around 26% as of Jan. 26. By comparison, the S&P 500 is up around just 1.5%. Could this be the start of an even bigger rally for Novo Nordisk?
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Demand for the Wegovy pill is proving to be incredibly strong
Novo Nordisk launched its weight loss pill, which is the oral version of its popular injectable Wegovy, earlier this month. And in its first full week, it was prescribed 18,410 times in the U.S.
It's a great sign for Novo Nordisk that might bolster its growth rate this year, which is in desperate need of a catalyst. Last year, the healthcare company slashed its full-year outlook due to rising competition and compounding pharmacies offering knock-off versions of its popular drugs. From a previous range of 13% to 21%, the company cut its guidance for sales growth to a range of just 8% to 14%. With strong demand for its weight loss pill, there's likely to be much better growth numbers for Novo Nordisk in 2026.
NYSE: NVO
Key Data Points
Novo Nordisk's stock looks overdue for a significant rally
Last year was a tough one for Novo Nordisk, as the drugmaker's stock fell by a whopping 41%. A cut to its guidance and a change in CEO gave investors multiple reasons to be bearish on the stock. However, the market was arguably far too bearish on what is still a quality stock to invest in. Even with its strong start to 2026, Novo Nordisk's stock looks fairly cheap, trading at a price-to-earnings (P/E) multiple of just 17. By comparison, rival Eli Lilly's stock trades at a P/E of more than 50.
There's plenty of room for Novo Nordisk's stock to rise higher this year. Despite the strong performance in the first few weeks of the year, it's not too late to invest in this top healthcare stock, as this may still be the early innings of a much larger rally to come.
