Novo Nordisk launches Wegovy at a cash price of $349 earlier than expected
Novo Nordisk's Pricing Strategy: Novo Nordisk has begun selling its weight-loss drug Wegovy for $349 a month to cash payers, ahead of a previously announced timeline, with similar pricing for most doses of its diabetes drug Ozempic.
Competitive Landscape: The company faces competition from Eli Lilly, which will offer its obesity medicine Zepbound at $299 per month starting in January, and from cheaper alternatives available through pharmacies and telehealth providers.
Promotional Offers: Novo has introduced a promotional price of $199 a month for the lowest doses of Wegovy and Ozempic for new cash-paying patients, valid for two months until March 31, 2026.
Government Pricing Agreement: Under a deal with the Trump administration, starter doses of Novo's and Lilly's weight-loss medications will be priced at $149 per month for Medicare and Medicaid enrollees, with a net price of $245 per month for government programs.
Trade with 70% Backtested Accuracy
Analyst Views on COST
About COST
About the author


- Market Shift: There is a significant rotation from software stocks to safer investments like consumer staples.
- Investor Sentiment: Investors are concerned that advancements in AI, such as ChatGPT, may negatively impact service-oriented businesses while benefiting manufacturers of household products.
- Milestone Achievement: Walmart's market cap has surged by 28% over the past year, reaching $1 trillion, making it one of the few non-tech stocks in this exclusive club, yet this high valuation raises concerns among investors about potential overvaluation.
- Valuation Comparison: Currently, Walmart's P/E ratio stands at 45, significantly higher than its five-year average of 35 and the S&P 500's average of 25, indicating that the market has high expectations for its future growth, which is only at 6%, making such a premium hard to justify.
- Limited Growth Potential: Despite Walmart's expansion in e-commerce and the acquisition of Vizio providing new opportunities for its advertising business, its growth rate remains in the single digits, prompting investors to carefully assess the sustainability of its high valuation.
- Investment Advice: Given Walmart's elevated valuation, analysts recommend avoiding the stock, suggesting that there are other retail investment options available that may offer better long-term returns, despite Walmart's strong business fundamentals.
- Cost Comparison: FSTA's expense ratio is just 0.08%, significantly lower than RSPS's 0.40%, meaning investors pay only $8 annually for every $10,000 invested in FSTA compared to $40 for RSPS, greatly reducing investment costs.
- Performance Metrics: As of February 3, 2026, FSTA boasts a 1-year return of 8.34%, surpassing RSPS's 7.01%, indicating that FSTA has provided higher returns over the past year, potentially attracting yield-seeking investors.
- Risk Assessment: Over the past five years, FSTA's maximum drawdown stands at 16.57%, lower than RSPS's 18.61%, showcasing FSTA's relative stability during market fluctuations, which may appeal to risk-averse investors.
- Holding Structure: FSTA holds 96 stocks primarily focused on consumer defensive names, while RSPS equally weights 36 stocks, leading to a strategy where FSTA may achieve higher returns when top companies perform well but also faces greater volatility risk.
- Expense Ratio Advantage: FSTA boasts a significantly lower expense ratio of 0.08% compared to RSPS's 0.40%, meaning investors pay only $8 annually for every $10,000 invested in FSTA versus $40 for RSPS, enhancing FSTA's cost-effectiveness for long-term investors.
- Return Performance Discrepancy: While RSPS offers a slightly higher dividend yield, FSTA has outperformed in one-year and five-year total returns, indicating that FSTA may provide better capital appreciation opportunities amid market fluctuations.
- Holdings Structure Comparison: FSTA holds 96 stocks, primarily concentrated in large consumer brands like Costco, Walmart, and Procter & Gamble, which account for nearly 37% of its assets, whereas RSPS evenly distributes its 36 holdings, ensuring a balanced risk and return profile.
- Investment Strategy Choice: FSTA's concentrated holdings strategy may yield excess returns when large brands perform well, but it also poses greater risks during market downturns, while RSPS's equal-weight strategy helps mitigate single-stock volatility, making it suitable for risk-averse investors.
- Stock Price Surge: Costco's stock has risen 15% since the beginning of the year despite a decline over the past 12 months, indicating market confidence in its future performance, although this increase is not driven by news.
- High Membership Renewal Rate: With a membership renewal rate around 92%, Costco demonstrates strong customer loyalty, which has historically attracted investors, including former shareholder Warren Buffett.
- Successful International Expansion: Costco has successfully expanded internationally, particularly in Europe and Asia, outperforming Walmart in these regions, thereby enlarging its addressable market and enhancing future growth potential.
- Valuation Concerns: Despite ongoing revenue and profit growth, Costco's P/E ratio has reached 52, significantly higher than its competitors, suggesting that the current stock price may be overvalued, leading investors to refrain from adding shares at this time.
- Stock Price Trend: Costco (COST) has seen a 15% increase in stock price since the beginning of the year, despite a decline in value over the past 12 months, aligning with the overall recovery trend in the retail sector alongside Walmart and Target.
- Stable Membership Renewal: With a membership renewal rate around 92%, Costco demonstrates high customer loyalty; despite slow growth, its revenue rose by 6% year-over-year in Q1, with net income reaching $2 billion, an 11% increase from the previous year.
- Successful International Expansion: Costco has successfully expanded into international markets, particularly in Europe and Asia, where Walmart has struggled with brick-and-mortar stores, thus providing Costco with a significantly larger addressable market.
- Valuation Risks Emerge: Although Costco is a high-quality company, its P/E ratio has reached 52, far exceeding Walmart and Target, leading analysts to suggest that investors should refrain from adding shares at this valuation level, indicating that the market has fully priced in expectations for future growth.










