Healthcare Stocks’ Summer Slump: Two Companies Poised for Recovery

Healthcare stocks have struggled this year, with major industry ETFs underperforming the broader market. Novo Nordisk (NVO) and Viking Therapeutics (VKTX) have been particularly hard hit, both lagging significantly behind market benchmarks year-to-date.

Novo Nordisk's recent 13% forward P/E ratio presents a compelling value proposition compared to the healthcare sector's average of 16.6. The Danish pharmaceutical giant maintains superior revenue growth metrics versus peers, despite recent clinical setbacks and competitive pressures from Eli Lilly in the diabetes/weight loss markets.

Viking Therapeutics' 46% decline this year appears overdone given its robust pipeline. Market sentiment may be overlooking the company's innovative therapies in development, creating potential upside for patient investors.