Wednesday's IBD 50 Stocks To Watch pick, weight-loss drug leader Novo Nordisk, hit an early buy trigger during the recent stock market rebound. That makes Novo Nordisk stock one of the best stocks to watch right now.
Last month, Novo said its next-generation weight-loss pill, amycretin, outperformed blockbuster Wegovy in an early-stage study. Over 12 weeks, amycretin recipients lost more than 13% of their body weight. By comparison, people taking Wegovy lose about 6% body weight over the same time period.
The weight-loss drug race currently features two leaders: Novo Nordisk with Wegovy and Eli Lilly with Zepbound. Both are weekly injections. The two companies are also trying to outdo themselves with next-generation shots and pills.
Novo Nordisk's first-quarter results are due on May 2. Wall Street expects the company to earn 74 cents a share on sales of $9.1 billion.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Novo Nordisk Stock Hits Buy Point
Novo Nordisk stock is building a flat base with a 138.28 official buy point, according to IBD MarketSurge chart analysis. On Tuesday, shares rallied 2.7%, bullishly retaking the 50-day line and breaking above a trendline entry around 126.25. Shares declined nearly 2% in midday action Wednesday.
For more aggressive investors, that places the weight-loss drug leader in a new buy area. Remember, IBD's market outlook remains in a correction following heavy losses on the major stock indexes. So, other investors may decide to wait for a decisive breakout past the official buy point.
IBD recommends an equity exposure range of 0%-20% on the stock market today, with a follow-through day possible as early as Thursday.
Novo Nordisk stock boasts a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. That makes it one of the best stocks to watch.
Another big positive is the stock's relative strength line. The RS line is nearing new highs ahead of a potential breakout, a sign that Novo Nordisk stock isn't succumbing to the stock market weakness. That's an indicator of strong stock market outperformance and investors should take note.
Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Texas Roadhouse | 157.12 | Flat base | |
| Datadog | 138.61 | Flat base | |
| Interactive Brokers | 112.50 | Tight area |
Source: IBD Data As Of April 24, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
