Key Points Novo Nordisk could get its momentum back with its oral Wegovy pill. Danaher is a proven market-beater trading at a fair price today. UnitedHealth Group is a stock with serious risks, but also offers high upside if things go the company's way. 10 stocks we like better than Novo Nordisk › Healthcare stocks have lagged the broader stock market over the past year. Political tensions following the slaying of an insurance executive and policy uncertainty following the transition to the Trump ...

Core Insights - The article provides a market analysis of major pharmaceutical companies including Eli Lilly and Company, Merck & Company Inc, Biogen Inc, and Pfizer Inc, highlighting their performance and market trends [1] Company Summaries - **Eli Lilly and Company**: The company has shown significant growth in its revenue, driven by strong sales of its diabetes and cancer drugs. Recent product launches are expected to further enhance its market position [1] - **Merck & Company Inc**: Merck has reported a steady increase in its vaccine sales, particularly in the oncology segment. The company is focusing on expanding its pipeline with new drug candidates [1] - **Biogen Inc**: Biogen's performance has been impacted by competition in the Alzheimer's treatment market. The company is exploring strategic partnerships to bolster its research and development efforts [1] - **Pfizer Inc**: Pfizer continues to benefit from its COVID-19 vaccine sales, but faces challenges as demand stabilizes. The company is investing in new therapeutic areas to diversify its portfolio [1] Industry Trends - The pharmaceutical industry is experiencing a shift towards personalized medicine and biologics, with companies investing heavily in research and development to stay competitive [1] - Regulatory changes and pricing pressures are influencing market dynamics, prompting companies to adapt their strategies accordingly [1]

Industry Overview - Healthcare stocks are currently at their lowest valuations in three decades, presenting potential investment opportunities for opportunistic investors [1] - The industry has faced significant challenges recently, but many healthcare stocks are available at reasonable valuations relative to their growth potential [1] Company Analysis: Pfizer - Pfizer is facing several patent cliffs, including the anticoagulant Eliquis, which will lose patent exclusivity by 2029, contributing to its poor market performance [4] - Despite recent challenges, Pfizer's revenue increased by 10% year over year to $14.7 billion in Q2, with adjusted earnings per share growing 30% to $0.78 [5] - The company has a promising pipeline, with new products like Abrysvo, a vaccine for respiratory syncytial virus, seeing a 155% revenue increase year over year to $143 million [6] - Pfizer has improved its pipeline through licensing deals and acquisitions, particularly in oncology, which is expected to yield excellent clinical results in the coming years [7] - Cost-cutting efforts are underway, with projected net savings of $4.5 billion by the end of the year and $7.2 billion by 2027, which will enhance profitability [8] Investment Consideration - The current market conditions make it a favorable time to invest in healthcare stocks, particularly Pfizer and Vertex Pharmaceuticals, as Pfizer's financial results and pipeline improvements position it well to navigate upcoming challenges [9]

Industry Overview - The healthcare industry has faced challenges in early 2025, including concerns over potential cuts to Medicare and Medicaid, as well as the impact of tariffs on supplies [1] - Despite these challenges, healthcare stocks have performed relatively well, with the Health Care Select Sector SPDR Fund (XLV) down less than 2% year-to-date, compared to the S&P 500's decline of nearly 3% [1] Company Analysis: Centene - Centene Corp. (CNC) has shown solid membership and revenue growth, primarily driven by its Medicaid services, which have helped it withstand market volatility [3][4] - For Q1 2025, Centene reported a 29% year-over-year increase in Marketplace membership and a 22% increase in Medicare membership, contributing to a 28% improvement in adjusted diluted earnings per share (EPS) and a 17% growth in premium and service revenue [4] - The company has reiterated its full-year guidance, indicating optimism for future performance [4] Company Analysis: Tenet Healthcare - Tenet Healthcare Corp. (THC) has received positive analyst ratings, with 13 Buy ratings and four Holds, following a strong Q1 2025 earnings report that exceeded EPS estimates by $1.25 per share, reflecting a year-over-year improvement of over 35% [6][7] - The company plans to invest $250 million annually in its Ambulatory segment and has opened six new centers in Q1 2025, which are expected to drive continued growth [8] - Tenet's share repurchase program and efforts to improve its balance sheet are anticipated to enhance shareholder value [8] Company Analysis: Encompass Health - Encompass Health Corp. (EHC) reported better-than-expected earnings, leading to increased price targets from analysts [10] - The company's shares have risen over 25% year-to-date, with expectations of 10% projected earnings growth in the near term [11]