Key Points
Shares of Pfizer, Novo Nordisk, and PDD Holdings trade at incredibly low valuations right now.
These stocks are trading at significant discounts relative to their future earnings.
While they are facing adversity, they still possess some promising long-term growth potential.
- 10 stocks we like better than Pfizer ›
Although the stock market may seem hot these days and largely overvalued, there are some gems you can find out there, with many stocks priced below $100. If you're a long-term investor, then three stocks you'll want to consider loading up on right now are Pfizer (NYSE: PFE), Novo Nordisk (NYSE: NVO), and PDD Holdings (NASDAQ: PDD).
These stocks are incredibly cheap, and here's why they could look like steals in a few years.
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Pfizer
One stock that can't catch much of a break these days is Pfizer. Although it has been trading at a discount for years, investors still aren't eager to buy it. Currently, it's trading at around $25, and this year, it's up around 1%, which doesn't offer much comfort to investors who have been hanging on for five years -- their investment in the company remains down around 37%.
The big risk with Pfizer is slowing growth and looming patent cliffs on key drugs. Those are considerable concerns, but I also believe they are a bit overblown. Facing drug expirations is an inevitable problem in the healthcare sector. The good news is that Pfizer has at least been making a considerable effort in expanding its pipeline and pursuing growth opportunities, such as its acquisition of Metsera last year, which gave it a promising GLP-1 asset in MET-097i.
Pfizer is still a big player in the healthcare industry, with its revenue totaling $62.6 billion last year. And although that was down slightly from the previous year, with the company making continued investments into its growth, I believe it's on the right path. It may take some time, but with the stock trading at just nine times future earnings (based on analyst forecasts), there's some excellent margin of safety here. Plus, Pfizer's stock also pays 6.8% in dividends.
Novo Nordisk
Novo Nordisk is another healthcare company that's in a tough spot. It has some terrific GLP-1 drugs in Wegovy and Ozempic that regulators have already approved, and which are generating a ton of revenue for the business. But with rising competition, it's also facing some headwinds this year due to lower prices. The company's adjusted sales for the first three months of the year were down 4% (at constant exchange rates).
However, with its Wegovy pill in its early stages and showing strong demand out of the gate, there's reason to be optimistic that Novo Nordisk's growth may look much better in the future. And a higher-dose version of Wegovy has also been showing encouraging early signs that it may help people lose as much as 28% of their body weight. That kind of performance could help it wrestle away market share from rival Eli Lilly.
Novo Nordisk trades at less than 14 times its projected future earnings, as this also looks like a heavily discounted stock to own right now. It's trading around $45 and could prove to be an excellent growth stock to just buy and hold.
PDD Holdings
PDD Holdings stock is down 17% this year, and it now trades at around $95. PDD is the company behind the popular e-commerce site Temu, which consumers often flock to in search of bargains. Its products are mainly sourced from China, and tariffs and trade uncertainty have weighed on PDD's stock over the past year, which is now trading around its 52-week low.
Despite the adversity, however, the business has shown resilience. Sales for the last three months of 2025 were up by 12% to around $17.7 billion. What was a bit disappointing, however, was an 11% decline in net income. But if trade conditions improve between China and the U.S. and tariffs come down, that could strengthen PDD's numbers and growth prospects in the future.
Buying the stock now, while pessimism is high, could enable you to buy it at an incredibly low valuation -- it's currently trading at just eight times its projected future earnings.
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David Jagielski, CPA has positions in Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly and Pfizer. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
