Is Novo Nordisk Stock a Smart Buy Now?

Casey Halston

Published: February 3, 2026 12:13 PM ET

Novo Nordisk has recently launched a GLP-1 pill, expanding its portfolio beyond weight-loss medications. The pharmaceutical company has been a significant player in the GLP-1 market, especially with its diabetes treatment Ozempic. However, competition has intensified as Eli Lilly’s GLP-1 drugs have gained traction among consumers. Despite these challenges, Novo Nordisk could present a worthwhile investment opportunity for long-term investors.

Analyzing Novo Nordisk Stock: A Smart Buy?

The pharmaceutical landscape has seen an influx of GLP-1 weight-loss medications. Initially, Novo Nordisk was at the forefront with Ozempic. Yet, Eli Lilly’s products, notably Mounjaro and Zepbound, have become increasingly preferred by patients. As a result, Novo Nordisk’s stock experienced a decline, leading some investors to shift their focus to Eli Lilly.

The Impact of Valuation

Investor sentiment is often influenced by market trends. For instance, many have flocked to GLP-1 stocks, driving prices higher. Nevertheless, the valuation of these companies is a crucial factor. Currently, Eli Lilly boasts a price-to-earnings ratio (P/E) of 50, while Novo Nordisk sits at a more modest 18. Over the last five years, Eli Lilly’s average P/E was 55, compared to Novo Nordisk’s 30. This indicates that Novo Nordisk presents a more compelling investment value relative to its historical averages.

Novo Nordisk P/E: 18
Eli Lilly P/E: 50
Eli Lilly 5-Year Average P/E: 55
Novo Nordisk 5-Year Average P/E: 30
Novo Nordisk Dividend Yield: 2.8%
Eli Lilly Dividend Yield: 0.6%

Innovative Products and Market Presence

While Novo Nordisk may not currently lead the GLP-1 market, the company has displayed significant innovation. It was the first to market a GLP-1 pill, which may help regain market share. Many consumers prefer oral medications over injections, giving Novo Nordisk an advantage. Competitors like Pfizer are also developing GLP-1 drugs, highlighting the competitiveness within this sector.

Long-Term Growth Potential

Novo Nordisk is more than just a maker of GLP-1 drugs. The company remains an industry leader in insulin production. With a continuous demand for insulin, Novo Nordisk benefits from a reliable customer base, ensuring consistent cash flow. The company’s dividend payout ratio is about 40%, underpinning the sustainability of its generous dividend yield.

Conclusion: A Stock Worth Considering

With its innovative GLP-1 pill and strong foundation in diabetes treatments, Novo Nordisk is positioned as an attractive investment. For those focused on dividends or seeking value, this stock may be a compelling option. The core diabetes business provides a robust backbone for both the dividend and the potential long-term growth of the company.