Novo Nordisk A/S (NVO · NYSE)

Novo Nordisk shares have fallen sharply, down 16.1% over the past month and 19.4% over three months to $38.80, leaving the stock 36.5% below its 52-week high with RSI at 20. The pressure comes despite strong profitability — 82.0% gross margin, 42.5% operating margin, and 59.8% ROE — as earnings declined 20.6% year over year on just 2.1% revenue growth, and Eli Lilly gained ground with its FDA approval of once-weekly insulin Onswik. The company beat estimates in three of its last four quarters, including the most recent at $0.96 versus $0.82 expected, and reported positive trial data showing CagriSema outperformed Zepbound in weight loss. Valuation has compressed to a 9.72 P/E and 8.18 EV/EBITDA against a $171.37B market cap, with modest leverage at 0.8x debt/EBITDA and $42.40B in quarterly free cash flow.