Quick Read
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NVO sits 44% below its 52-week high with a price-to-free-cash-flow of 5 and a free cash flow yield above 20%.
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XLV’s flat 2026 performance masks CVS trading at a forward P/E of 14 with 86% analyst buy ratings and zero sell ratings.
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Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AbbVie didn’t make the cut. Grab the names FREE today.
Healthcare has spent 2026 on the sidelines while the rest of the market does the heavy lifting. The Health Care Select Sector SPDR Fund (NYSEARCA:XLV) is down around 1% year to date even after a 6% one-month bounce. That stagnation has left a handful of high-margin operators trading at forward multiples that look out of step with their cash generation. Here are three to put on the radar this month.
Novo Nordisk (NYSE: NVO)
Novo Nordisk (NYSE:NVO) is the most aggressive value setup of the three. The stock is a U.S.-listed ADR, so American holders should factor in Danish withholding tax on dividends. Shares trade around $44, well below the 52-week high of $81.44, and the stock is down 45% over the past year and 15% year to date.
The “ridiculously cheap” framing has real teeth here. Novo Nordisk carries a price-to-free-cash-flow ratio of 5, a free cash flow yield north of 20%, an operating margin of 41% and ROE of 61%. Wegovy is doing the heavy lifting: The oral version launched Jan. 5, and posted $2.26 billion in Q1 sales, capturing 65% of new U.S. prescriptions in the category with more than 1 million patients. Total Wegovy revenue hit $18.235 billion in Q1, up 12%, and management narrowed FY26 sales guidance to -4% to -12% growth at constant exchange rates.
CEO Mike Doustdar framed it directly: “Wegovy is driving a strong start to 2026 … the most efficacious GLP-1 tablet now used by more than one million patients since its January launch.”
Risk: The MFN pricing agreement with the US Administration, intensifying competition from tirzepatide and a CagriSema REDEFINE 4 trial that missed its primary endpoint are real overhangs. Reddit sentiment also shifted sharply bearish in early June, suggesting the bottom may not be in.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AbbVie didn’t make the cut. Grab the names FREE today.
AbbVie (NYSE: ABBV)
AbbVie (NYSE:ABBV) requires a small framing softener. The headline trailing P/E of 94 looks rich, but the forward multiple reframes the setup: an implied forward P/E of 22 on $12.78 in forward EPS, with 75% of analysts bullish and an average target of $253.55. For a company with 70% gross margins and 33% operating margins, that is a reasonable multiple.
