2 Stocks Down 8% or More That Are Screaming Buys Right Now

Broader equities have performed fairly well this year, despite several macroeconomic headwinds, with major U.S. indexes now sitting near all-time highs. Is it still worth it to invest in stocks right now? Yes, it is, and one way to do so is to look for beaten-down companies that look likely to recover. Here are two options to consider: Intuitive Surgical (NASDAQ: ISRG) and Novo Nordisk (NYSE: NVO). Despite recent challenges, both of these corporations look like great long-term picks.

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1. Intuitive Surgical

Intuitive Surgical's latest version (the fifth) of its famous da Vinci system is popular among surgeons. However, the device carries lower margins than the company's average. That's one of the key reasons the stock has underperformed in recent years and is down 34% year to date. But Intuitive Surgical may be a great buy on the dip, as the da Vinci 5 is likely to make up for its lower margins down the road.

The device could meaningfully expand Intuitive Surgical's market thanks to several features that previous versions lacked. For instance, the da Vinci 5's Force Feedback Technology allows surgeons to better gauge the force they exert on patients' tissues during procedures, potentially improving outcomes. The device also has significantly greater computing capacity than older da Vinci systems and could eventually integrate many artificial intelligence (AI)-powered features.

No wonder it's been helping Intuitive Surgical expand its installed base.

In the second quarter, the company sold 468 da Vinci systems, 246 of which were da Vinci 5 systems. It brought the total installed base of its crown jewel to 11,710, up 12% year over year. Intuitive Surgical makes most of its money from the sale of perishable instruments and accessories. Increased procedure volume yields stronger recurring, higher-margin revenue from this source. And over the medium term, the da Vinci 5 could meaningfully grow procedure volume.

Further, the company could also reduce manufacturing costs associated with the da Vinci 5 -- thereby improving its margins -- as it scales production. Intuitive Surgical is still looking at a large addressable market in the robotic-assisted surgery industry, which is arguably underpenetrated. The company also boasts a wide moat thanks to high switching costs. Intuitive Surgical can bounce back from recent challenges and reward patient investors, which makes the stock a solid buy on the dip.

2. Novo Nordisk

Novo Nordisk was a pioneer in the GLP-1 weight loss market. But the company has lost its lead to its biggest rival, Eli Lilly (NYSE: LLY). The Denmark-based pharmaceutical leader's financial results have been mediocre over the past couple of years. The stock is down substantially as a result, having lost 8% in value this year alone. The good news for Novo Nordisk is that after a series of clinical setbacks in its core area of expertise, the company appears ready to turn things around.

The drugmaker's future still largely hinges on its work in the GLP-1 market, and it boasts a deep pipeline in this field. Clinical wins over the next couple of years could send the stock price soaring. Let's discuss two of Novo Nordisk's most promising candidates. First, there is amycretin, a medicine that mimics the actions of the GLP-1 and amylin hormones. It posted highly promising results in a phase 1b/2a study. Patients on amycretin lost as much as 24.3% of their weight in 36 weeks. These are outstanding results, albeit in a study with a relatively small number of patients.

The medicine also posted excellent weight loss and A1C level reductions in patients with type 2 diabetes (who have a harder time losing weight). Further, this promising candidate is being developed in both subcutaneous and oral formulations. Then there is UBT251, which mimics the action of three gut hormones: GLP-1, GIP, and glucagon. It posted a mean weight loss of up to 19.7% in a 24-week phase 2 study in China.

Again, there are caveats to keep in mind here, but these two candidates could help Novo Nordisk regain some market share in its core therapeutic area. Of note, the company has already made progress with the Wegovy pill, the first oral GLP-1 weight-loss medicine to earn approval. It has a leading market share in the oral weight loss niche. The GLP-1 market is projected to grow rapidly, and Novo Nordisk appears well-positioned to capitalize on it. That's why the stock is a buy as it remains well below its all-time highs.

Prosper Junior Bakiny has positions in Eli Lilly, Intuitive Surgical, and Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly, Intuitive Surgical, and Novo Nordisk. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.