1 Healthcare Giant That Isn't Jumping on the GLP-1 Bandwagon, and Why That Could Be a Great Move

Group 1: Company Strategy - Novartis is adopting a strategic approach to growth, opting not to participate in the competitive weight loss drug market, which has a market potential of $200 billion [1][2] - CEO Vas Narasimhan emphasized focusing on opportunities with higher odds of success rather than joining the current "frenzy" in the weight loss sector [3] - The company is targeting areas such as radioligand cancer therapies, which could build a $20 billion business, and treatments for neurodegenerative diseases like Parkinson's, Huntington's, and Alzheimer's [4][5] Group 2: Financial Performance - Novartis' stock has increased by 15% this year, which is lower than the S&P 500's 22% gain, but this has resulted in a more modest valuation with shares trading at 14 times expected future earnings [7] - The company's projected annual sales growth is 5% through 2027, which, while not overly exciting, helps manage future expectations [8] Group 3: Investment Appeal - Novartis is considered a potentially underrated growth stock, appealing to risk-averse investors seeking growth opportunities [9] - The stock offers a dividend yield of 3.3%, significantly higher than the S&P 500 average of 1.3%, making it an attractive long-term investment option [10]