Analysts Highlight Underrated Pharma Stocks Amid Market Challenges

NEW YORK, NY — Three financial analysts are spotlighting big pharmaceutical companies they believe are undervalued in the current market. As of July 28, 2025, these firms include Merck, Novo Nordisk, and Pfizer, prompting examination of their recent performances and future outlooks.

Merck, a pharmaceutical giant, is facing significant challenges due to the impending loss of patent exclusivity for its cancer drug Keytruda, which is critical for its growth. Analysts predict that by 2028, its market influence could diminish. Despite these challenges, they argue that Merck’s stock appears attractive due to its low forward price-to-earnings ratio of 9.4, compared to the healthcare sector average of 16.5. The company is also working on a subcutaneous version of Keytruda that could maintain its market presence well into the future.

Novo Nordisk, currently valued below $300 billion, has also seen a drop in share prices, over 50% in the past year. Recent phase 3 trial results for its weight loss drug, CagriSema, fell short of expectations, contributing to investor hesitance. Nevertheless, Novo Nordisk continues to expand its highly regarded weight loss drug Wegovy, and the potential of its next-generation treatment amycretin may reignite interest among investors.

Pfizer’s stock also poses an intriguing opportunity. Analysts have set a 12-month price target indicating a potential upside of nearly 20%; however, the current share price is below previous highs. Pfizer has faced pipeline setbacks but continues to perform well with drugs like Nurtec ODT and Padcev. The company remains committed to maintaining a growing dividend, and its shares are currently trading at a low valuation of approximately 8.7 times forward earnings.

As these companies navigate their challenges, analysts suggest potential for improved performance and returns for investors looking into the pharmaceutical sector.