Markets can be fickle. When a high-growth company doesn’t exceed lofty expectations, investors can be quickly disappointed. And when investors are disappointed, a fast-growth stock can get beaten down.
That could mean an opportunity for investors who buy shares at a much lower price. As long as the growth story remains intact, profits can be made down the line. And investors who buy during periods of fear and sell during times of greed can fare even better.
That could be the case for investors in
Novo Nordisk (NVO) today. The drug manufacturer saw its shares sink nearly 20% last week after it posted sales of its popular obesity drug that failed to meet expectations.
However, there’s still long-term demand for obesity drugs, and Novo has some strong growth behind it.
Revenues and earnings are both up 21% over the past year, a high rate of return for a drug manufacturer. And with many still starting to embrace weight loss drugs, there’s likely more upside ahead in 2025.
Action to take: Investors may like shares here as a rebound play in the coming months. Novo shares pay investors 1.4% right now, and with rebound potential could see low double-digit returns in the coming weeks.
For traders, with a rebound potential, a call option like the February 2025 $90 calls, last trading for about $3.40, could see strong, mid-double-digit returns in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.