Healthcare stocks are experiencing a downturn, but there's a silver lining for investors who are willing to take a contrarian approach. While Eli Lilly, a leader in GLP-1 weight loss drugs, boasts a high price-to-earnings ratio of 46, two other drugmakers offer more attractive opportunities. These competitors have price-to-earnings ratios that are less than half of Eli Lilly's, and their dividend yields are significantly higher, reaching up to 6.3%.
But here's where it gets controversial: while Eli Lilly's revenue growth is impressive, with Mounjaro and Zepbound sales soaring by 99% and 175% respectively, Novo Nordisk's obesity drugs only managed a 31% growth in 2025. This disparity in growth rates could be a red flag for investors. However, for those who are willing to take a long-term view, Pfizer and Novo Nordisk stocks could be bargain buys. While Pfizer is playing catch-up with its GLP-1 drug candidate, it has a successful history of innovation and a high dividend yield of 6.3%.
For more conservative investors, Novo Nordisk is a safer bet, with a lower P/E ratio of around 20 and a well-covered 3.9% dividend yield. However, for contrarians, the dividend is just the tip of the iceberg. While the current weak patch may be concerning, the long-term prospects for these stocks could be promising. So, should you buy stock in Pfizer right now? The Motley Fool Stock Advisor team has identified 10 stocks that could produce monster returns in the coming years, and Pfizer wasn't one of them. But that doesn't mean it's not worth considering. With a high dividend yield and a successful history of innovation, Pfizer could be a good fit for a long-term value investor's portfolio.
