2 Healthcare Stocks That Are Losing to the S&P 500 This Year

Group 1: Novo Nordisk - Novo Nordisk has faced challenges including a clinical setback for a weight management candidate and financial results that, while strong, did not meet higher market expectations [4][5] - The company's shares are down 18% year to date, significantly underperforming the S&P 500, but the stock may currently be undervalued [5] - Novo Nordisk's pipeline, particularly in diabetes and weight management, remains robust, with a phase 3 study for amycretin underway and regulatory approval requested for an oral version of semaglutide [6][7] - Financial performance is expected to remain strong due to continued revenue growth from Ozempic and Wegovy, with a forward price-to-earnings ratio of 16.9, comparable to the healthcare industry average of 16.5 [8] - Historically, Novo Nordisk has outpaced its peers in revenue and earnings growth, making its current stock levels attractive based on growth potential [9] Group 2: Regeneron Pharmaceuticals - Regeneron is experiencing biosimilar competition for Eylea, leading to a 19% decline in shares year to date, but the stock remains appealing [10] - The newer high-dose formulation of Eylea is gaining market share and is expected to grow further with label expansions [11] - Regeneron has a strong pipeline with new brand approvals, including Lynozyfic for cancer, and promising candidates like a gene therapy for genetic deafness [12] - Dupixent, Regeneron's key product for eczema, is performing well and has received important label expansions, ensuring continued growth [13] - The company is focused on returning capital to shareholders through dividends and a share-buyback program, suggesting potential long-term returns for investors [14]