People are always looking for something to believe in. Sometimes it’s a religion, sometimes it’s a sports team. And sometimes, it’s a healthcare stock trading for less than the price of a decent lunch. So it goes. There are plenty of these, naturally. Most of them will, eventually, disappoint. But a few might not. We’ll look at three. Don’t get your hopes up.
The Giants, Wobbling Slightly
Pfizer (PFE +3.16%) and Novo Nordisk (NVO 0.44%) are large. Very large. They make pills. Lots of them. Both have had a bit of trouble lately, which is what happens to everything eventually. Pfizer’s Covid bump is fading, which is a shame for their shareholders, but predictable. Novo Nordisk lost some ground in the weight-loss game, which is a bit like losing at being hungry. At their current prices, though, they’re worth a look. A cautious look, mind you.
Pfizer is trading around $27. A bargain, if you believe in bargains. They’re at 9 times forward earnings, which is less than the industry average of 17.8. They have a pipeline, mostly focused on cancer and, predictably, weight loss. They’re hoping for miracles, like everyone else. It’s a long shot, but so is everything.
Novo Nordisk, around $39, is also cheap-ish. They’re hoping their weight-loss drugs, Wegovy and its oral version, will continue to be popular. People will always want to be thinner, even if it doesn’t make them happier. The market for anti-obesity products is expanding, and Novo Nordisk is well-positioned to benefit. They’re riding the wave, as they say. Until the wave crashes, of course.
Novo Nordisk’s drugs work, at least for a while. They have more in the pipeline. It’s a good business, if you can stomach it. They could deliver decent returns over the next five to ten years. Or they won’t. It’s all a bit of a roll of the dice.
A Smaller Fish, Swimming Upstream
Exelixis (EXEL +1.78%) isn’t a household name. They make cancer drugs, specifically for liver and kidney cancer. They’re growing revenue and earnings, which is nice. Their main drug, Cabometyx, is doing well. They’re hoping to get more approvals for it. It’s a good run, but everything ends eventually. So it goes.
Exelixis is working on new drugs, preparing for when Cabometyx faces generic competition around 2030. They have a drug, zanzalintinib, that showed promise in treating colorectal cancer. Colorectal cancer is nasty. It’s the second leading cause of cancer death worldwide. Five-year survival rates aren’t great. They’re trying to make a difference, which is admirable, even if it doesn’t always work.
Exelixis is around $41 a share. It’s an attractive price, given their focus on oncology. It’s a lucrative area, but also a crowded one. They could have a transformed lineup by 2030. Or they won’t. It’s a gamble, like everything else. But sometimes, a modest gamble is all you have.
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2026-03-18 15:32