(Bloomberg) -- Weight-loss drugmakers Novo Nordisk A/S and Eli Lilly & Co. are more likely to turn into laggards in 2024 than other stock market stars of this year. That’s according to Bloomberg’s latest Markets Live Pulse survey.
About 34% of respondents in the survey of 518 participants picked weight-loss drugmakers as this year’s winners that would most probably turn into losers next year. That compares with 31% who chose the so-called Magnificent Seven technology behemoths as potential underperformers, while the rest were split about evenly between Japanese and MSCI Latin American stocks.
Novo Nordisk became Europe’s most-valuable listed company this year, while Eli Lilly shares have surged about 60%, due to the success of their weight-loss drugs, which have sparked something of a gold rush in the pharmaceuticals industry. Valuations of both companies are showing a significant premium to the healthcare sector based on analysts’ earnings forecasts.
Read: Novo Targets Expanded Access to Weight-Loss Drug, JP Reports
Jefferies analysts last week named Novo as one of the four European stocks they see underperforming in 2024. There are “few key catalysts for Novo Nordisk over the coming 12 months, with pipeline perfection for earlier-stage assets likely already anticipated,” analyst Peter Welford wrote in a note.
--With assistance from Sagarika Jaisinghani.
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