I don’t think novo Nordisk is undervalued. Its antiobesity drug has been comparatively inferior compared to Eli Lilly’s and historically it also has been running into stock issues. So, I see it as inferior to Eli Lilly in both clinical performance and logistic capability which could be detrimental. Given novo Nordisk’s expected comparatively lower growth to Eli Lilly, Novo Nordisk is not undervalued and I prefer to buy a winner than a laggard.
UNH has pulled back already. However, I believe the new leadership can turn things around. It is a major player for insurance in the US and trump looks set to introduce his own ways of keeping healthcare costs affordable for the Americans though not the same strategy as Obamacare. I expect premiums to pour in as Americans depend on it to keep their healthcare costs more affordable and so I expect another rebound next year especially if recession happens.
Recently coka cola has done well too and is almost a sure win dividend stock.
Sector Rotation: LLY Breaks $1,000, UNH Rebounds: Shift to Value Stocks?
DJIA, representing the traditional economy, surged strongly to notch its 16th record closing high of the year, while the tech-heavy Nasdaq Composite ended lower.
On Wednesday, Eli Lilly jumped to $1,017, hitting another all-time high with its market cap nearing $1 trillion! UnitedHealth has surged 5.8% over the past two days.
As tech stocks rotate into value plays, have you caught this sector rotation?
With Eli Lilly breaking new highs, is Novo Nordisk now undervalued?
Do you believe UNH’s rebound has more room to run?
Besides healthcare, which other value stocks are climbing lately?
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