2 Dirt Cheap <a href="https://healthylife7.com/how-the-gut-microbiome-changes-after-45-and-why-it-matters-for-your-health/” title=”How the gut microbiome changes after 45 and why it matters for your health”>Healthcare Stocks to Buy in July
Joel South
Tue, July 7, 2026 at 6:00 PM GMT+5:30
5 min read
Quick Read
NVO trades at a forward P/E of 14 and PFE at just 8x, making both the cheapest large-cap healthcare names despite strong underlying free cash flow
Novo’s oral Wegovy captured 65% of new US prescriptions and generated $2.26 billion in Q1, but planned US price cuts of ~50% threaten margins
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Novo Nordisk didn’t make the cut. Grab the names FREE today
Healthcare has become Wall Street’s bargain bin in 2026, and value hunters are starting to pay attention. Drug pricing reform, patent cliffs and post-COVID-19 hangovers have crushed multiples across Big Pharma, but the wreckage has created opportunities in two cash-generative franchises trading at single-digit forward earnings multiples. Heading into July, Novo Nordisk and Pfizer stand out as the cheapest large-cap names in the group, with concrete catalysts that could re-rate them before year-end.
Both report Q2 earnings in early August, which means the window to position before the next data point is narrow. Here’s the case for each
Novo Nordisk (NVO)
Novo Nordisk (NYSE:NVO) trades around $49 after a brutal 12-month derating that took the stock down 29% from a year ago. The 52-week range stretches from $35.12 to $71.80, and shares now sit well below the $47.32 consensus analyst target. Note for income investors: NVO is a Danish ADR, so dividends are subject to foreign withholding tax at the
The valuation is where this gets interesting. Novo trades at a trailing P/E of 12 and a forward P/E of 14, with EV/EBITDA at 9. For a business generating a 71% return on equity and a 62% operating margin, that is a fire-sale multiple
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Novo Nordisk didn’t make the cut. Grab the names FREE today
The bull case rests on the Wegovy pill launch. CEO Mike Doustdar called it “the most efficacious GLP-1 tablet now used by more than one million patients since its January launch.” Q1 FY2026 results, reported May 6, showed the oral version generating $2.26 billion in its first quarter and capturing 65% of new US prescriptions in the category. Obesity care grew 22% at constant exchange rates, and management raised 2026 guidance. Free cash flow yield sits in the high teens, and the board funded a DKK 15 billion buyback through February 2027.
The risk: US pricing is the swing factor. The Most-Favored-Nation framework and planned ~50% Wegovy and ~35% Ozempic list price cuts effective January 2027 will compress cash flow. CER sales are still declining, and CagriSema missed its primary endpoint in the REDEFINE 4 obesity trial. Q2 results land Aug. 5, with consensus at 83 cents
