5 Best Weight Loss Stocks to Buy Now

In this article, we shall discuss the 5 best weight loss stocks to buy now. To read our detailed analysis of the obesity epidemic and the weight loss sector, go directly and see 10 Best Weight Loss Stocks to Buy Now.

5. Novo Nordisk (NYSE:NVO)

Hedge Fund Holdings: 32

Based in Bagsvaerd, Denmark, Novo Nordisk (NYSE:NVO) is a multinational pharmaceutical company which produces two of the leading obesity treatments in the market, namely Wegovy and Saxenda. These drugs use hormonal treatment to regulate appetite. In Q2 2022, the company beat EPS estimates of $0.73 by $0.03, posting earnings of $0.76 per share, making it one of the best weight loss stocks in the market right now. Investor interest in Novo Nordisk (NYSE:NVO) also increased in the second quarter of 2022, with 32 hedge funds long the stock, compared to 31 in the preceding quarter. As of Q2 2022, Jim Simons’ Renaissance Technologies is the largest shareholder in the stock, with a total stake of $1.95 billion.

On September 10,  Oddo BHF analyst Martial Descoutures upgraded Novo Nordisk (NYSE:NVO) to Outperform from Neutral, conferring a price target of $11.80 on the shares. According to the analyst, the company has generated excellent returns in the past and shows even more promising indicators for continued growth and profitability in the future. Novo Nordisk (NYSE:NVO) has been able to maintain a strong pipeline which is fully geared to support a steady revenue stream and earnings growth through 2026. Post the pandemic and amid the obesity crisis, particularly in the United States and Europe, healthcare and fitness stocks are generally a safe bet and hence, the analyst has claimed that he remains bullish on the stock long-term.

Here is what Baron Funds had to say about Novo Nordisk (NYSE:NVO) in their Q2 2022 investor letter:

“We added to our position in Novo Nordisk A/S, a leading global biopharmaceutical company headquartered in Denmark that specializes in treatments for diabetes, obesity, and other chronic diseases. We wrote about Novo Nordisk in last quarter’s letter. We continue to believe Novo Nordisk’s diabetes and anti-obesity franchise will drive attractive revenue and earnings growth for many years to come. We think both Novo Nordisk and competitor Eli Lilly and Company(which we also own in the Fund) can be successful in these large markets.”