3 Beaten-Down Stocks With GLP-1 Exposure to Buy and Hold

The first GLP-1 medicine was approved in the U.S. in 2005 for the treatment of type 2 diabetes. Since then, breakthroughs have occurred in the field. Medicines in this class are now indicated for chronic weight management, obstructive sleep apnea, metabolic dysfunction-associated steatohepatitis, and other conditions. Analysts predict that the market for GLP-1 drugs will expand rapidly over the next decade, and several companies could capitalize on it. Let's consider three corporations whose businesses may benefit from the GLP-1 boom to invest in today: Novo Nordisk (NYSE: NVO), Becton, Dickinson and Company (NYSE: BDX), and Dexcom (NASDAQ: DXCM).

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1. Novo Nordisk

Novo Nordisk has been a pioneer in the GLP-1 market. The company's Ozempic and Wegovy -- two GLP-1 medicines -- have become household names. However, the Denmark-based pharmaceutical giant has lost significant market share to its main competitor in this niche, Eli Lilly (NYSE: LLY). That said, Novo Nordisk can still capitalize on the GLP-1 boom over the medium term. In January, Novo Nordisk launched oral Wegovy, the first GLP-1 pill approved for weight loss, and it has been a smashing success. This is a niche of the industry where Novo Nordisk is even beating Eli Lilly. Novo Nordisk also has several products in the pipeline that could gain approval within a few years, helping cement its market position.

The list includes Amycretin, a dual GLP-1 and amylin agonist. Amycretin has shown highly promising results in early stage studies for weight loss and diabetes, and it could prove even more effective than Wegovy in phase 3 clinical trials. Beyond its core therapeutic area, Novo Nordisk is gradually building a stronger business elsewhere, especially in rare blood diseases. The company has achieved significant clinical wins in this field. Over the next few years, Novo Nordisk could bounce back from the issues it has faced and deliver solid returns, largely thanks to its work in the GLP-1 space.

2. Becton, Dickinson

The past five years have been rough for Becton, Dickinson, a medical device specialist. Slow revenue and earnings growth have led to terrible stock market performances for the company. However, Becton, Dickinson is slowly turning things around, and its exposure to the GLP-1 market may help. Becton, Dickinson is a leading manufacturer of self-injection systems (such as prefillable syringes) that patients use to take GLP-1 medicines. As demand for these drugs continues to expand, Becton, Dickinson is also seeing growing sales from that side of its business. Earlier this year, the company announced long-term deals with major pharmaceutical companies for two next-gen GLP-1 programs, which highlights that it has a runway for growth that extends years into the future.

Becton, Dickinson is investing more to ensure it can tap into this opportunity. In January, it announced a $110 million investment to expand its manufacturing capacity. The company is well-positioned to ride this tailwind, and there are other reasons to buy the stock, especially the dividend. Becton, Dickinson is a Dividend King, a corporation with 50 (or more) years of consecutive dividend increases. The GLP-1 opportunity should help boost sales growth, and Becton, Dickinson's dividend program is likely to remain intact over the long run.

3. Dexcom

Dexcom is a major player in the continuous glucose monitoring (CGM) market, helping patients with diabetes track their blood sugar in real time. According to some data, patients on GLP-1s and CGMs can achieve better outcomes -- such as improvements in blood sugar levels -- compared to those using GLP-1s alone. This could lead to higher demand for Dexcom's CGM devices and strengthen the company's competitive advantage. Dexcom's devices, including its G series of CGM systems, are compatible with a range of other devices indicated for diabetes patients, including insulin pens and pumps, among others. The more patients use its CGM systems, the more valuable its ecosystem becomes.

Dexcom has attractive opportunities ahead. As the company argues, over nine million patients in the U.S. have reimbursement for CGM but have yet to switch to these devices. Meanwhile, the company had a worldwide installed base of 3.5 million as of 2025. Further, the company has expanded its market by launching Stelo. This over-the-counter product can be used even by patients who aren't diabetic. Over the long run, the company should enter new territories and launch newer, better devices, as it has in the past. Dexcom has faced challenges in recent years as sales growth has declined, but its outlook over the next few years appears attractive. Soaring demand for GLP-1 products may help it rebound from recent woes through the associated increased prescriptions for its CGM devices.

Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.