Are Dietary Drug Stocks Eli Lilly and Novo Nordisk Ready To Rise Again?

Core Insights - The stocks of Novo Nordisk (NVO) and Eli Lilly (LLY), both prominent players in the dietary drug market, have stopped declining in price, raising questions about their investment potential at current levels [1][5]. Group 1: Market Trends - A recent Mercer survey indicates that 44% of US employers with 500+ employees now cover weight-loss drugs, an increase from 41% in 2023 [1]. - Among employers with over 20,000 employees, coverage for weight-loss drugs has risen to 64%, up from 56% last year [1]. - The rising costs of obesity drugs have contributed to a 5% increase in annual healthcare costs per employee, averaging $16,501 for self-insured plans [1]. Group 2: Stock Performance - Eli Lilly's stock showed a reversal bottom low on Monday, with today's price action confirming this trend [5]. - Novo Nordisk also exhibited a clear reversal bottom low on the same day, filling the gap left from a previous drop [5]. - Real Motion indicators suggest a mean reversion buy signal for Eli Lilly, while Novo Nordisk's performance is closely tracking benchmarks [5].