Healthcare Stocks Are Sinking. Here Are 2 to Buy on the Dip.

Core Insights - Eli Lilly is currently leading the GLP-1 weight loss drug market with a high price-to-earnings (P/E) ratio of 46 and a low dividend yield of 0.6% due to strong share price performance [1] - Novo Nordisk's growth in obesity drugs is significantly lower than Eli Lilly's, with a 31% increase in 2025 compared to Eli Lilly's Mounjaro and Zepbound, which saw sales growth of 99% and 175% respectively [2][3] - Pfizer is attempting to catch up in the GLP-1 market through partnerships and acquisitions, despite a recent unsuccessful drug candidate [5] Eli Lilly - Eli Lilly's revenue in 2025 was boosted by its GLP-1 drugs, Mounjaro and Zepbound, which experienced substantial sales growth [2] - The company's strong performance has led to a high P/E ratio, indicating investor confidence [1] Novo Nordisk - Novo Nordisk's obesity drugs showed a 31% growth in 2025, which is considered strong but pales in comparison to Eli Lilly's performance [3] - The company is facing challenges due to a pricing agreement with the U.S. government, which is expected to negatively impact financial results in 2026 [3] - Despite recent stock price declines of 66% since mid-2024, Novo Nordisk's P/E ratio is 13, and it offers a 3.9% dividend yield with a 40% payout ratio [4] Pfizer - Pfizer's internal GLP-1 drug candidate was unsuccessful, leading the company to seek growth through partnerships and acquisitions [5] - The company has a history of innovation and is also seeing success in oncology and migraine treatments [5] - Pfizer offers a high dividend yield of 6.3%, but its payout ratio exceeds 100%, making it a riskier option for conservative investors [6]