The yearlong downtrend in obesity drug supplier Novo Nordisk (NVO) is potentially over. Last Friday, Jan. 25, NVO stock gained 8.47% to close at $87.97. The company posted the results of its obesity therapy study.
Novo said that amycretin, one of its novel obesity therapies, caused up to 22% weight loss in subjects over 36 weeks. The study is in a Phase 1b/2a trial. The GLP-1 and amylin receptor agonist also indicated a safety profile comparable to that of semaglutide. Ely Lilly (LLY)’s tirzepatide is the rival therapy.
NVO stock sold off when the markets reacted negatively to weight loss data of 22% to 23% after 72 weeks. However, the 25% weight loss is in half that time.
In the telecom sector, be wary of Verizon Communications (VZ). The company reported non-GAAP EPS of $1.10 a share after revenue increased by 1.7% Y/Y to $35.7 billion. Verizon is forecasting total wireless service growth of 2% to 2.8%.
VZ stock is most suited for income investors. Dividends are steady and yield 6.9%, while the balance sheet continued to improve. Verizon reduced its dividend by 10% Y/Y. However, the purchase of Frontier will create near-term uncertainties for the firm.
Bargain hunters may wait for VZ stock to fall near its 52-week low at around $38. Traders could take profits if the stock rallied back to $41 – $45.
