Three Top Weight Loss Stocks to Buy and Hold Now

May 22, 2023
Women's legs on the scales, close-up of a measuring tape, the concept of losing weight, healthy lifestyle.

With the weather warming up, weight loss stocks are scorching hot.

Look at WW International (WW).

As we noted on April 13, WW had a rough run thanks to slowing growth. However, it appears the company may have turned a major corner with the acquisition of Sequence. That acquisition will now allow WW to enter the prescription drug and clinical weight loss segment. As of April 13, WW traded at $6.80. After hitting a high of $10, it’s now at $7.76.

Again, though, with summer around the corner, WW could race higher again.

We also mentioned Novo Nordisk (NVO).

On April 13, NVO traded at $165. It’s now up to $170.71, and still running. Helping, demand for the company’s weight loss treatment Wegovy is still skyrocketing in the U.S., leading it to raise its full-year profit and sales expectations.

In fact, at one point, according to Reuters, U.S. doctors were writing more than 100,000 prescriptions a week for Wegovy. But there was a snag. Unfortunately, with sky-high demand, supply has come under pressure – again. One that resulted in Novo Nordisk “temporarily” cutting supply in the U.S. to “safeguard continuity of care,” as noted in its investor deck.

Fortunately, it’s only expected to be temporary – with the company still “very encouraged” about its ability to scale up manufacturing this year.

There’s also Viking Therapeutics (VKTX).

Over the last few months, VKTX ran from about $10 to $24- and could see higher highs.

All thanks to its potential treatment for obesity – VK2735.

Working much like Eli Lilly’s Mounjaro, which stimulates GLP-1 and GIP, it also triggers a feeling of fullness in the body after eating. Better, it’s nearing Phase 2 trials. All after Phase 1 found that patients treated with VK2735 lost 6% in mean body weight, as compared to a placebo.

Even better, analysts at H.C. Wainwright just raised its price target on VKTX to $33. That’s partly because Viking’s obesity drug could gain exposure to a potential $50 billion obesity market. Even Roth MKM just raised its price target to $24 from $19 on the obesity story. Plus, we have to consider the weight loss and obesity management market is expected to increase from $2.8 billion in 2022 to $13.2 billion by 2029, as noted by Fortune Business Insights.