Chart of the week: Observing the market’s appetite for weight-loss stocks

05 March 2024

Data-driven insights and analysis from our investment team every week.

With much of the market’s attention on artificial intelligence (AI) and the stocks most closely associated with it, it can be easy to forget about a second but arguably equally impactful scientific development – that of weight loss drugs, known as GLP-1s in the industry (glucagon-like peptide 1). 

GLP-1s have been around for several years and mostly used to treat type 2 diabetes. More recently, some have been approved by the FDA for treatment of obesity.  Weight loss was the original side effect of these drugs because they activate receptors in the body to stimulate insulin release, which reduces blood sugar levels and curbs hunger.  

For many financial market participants, the wakeup call moment came in October last year when Walmart said that users of GLP1s, which it distributes through its network, were buying less food.  However, the recent hype around these drugs can likely be more explained by clinical trials and pre-clinical studies that suggest reduction of cardio events and even anti-addiction properties – all in addition to helping people lose weight and lower their blood sugar levels.  Our chart below illustrates how this has translated into superior stock performance for the two leaders in the obesity arms race so far.  As with AI, momentum with GLP-1s shows no sign of slowing down just yet.

This is a marketing communication.

Related Articles
Your Investments
Chart of the week: Are the ‘Magnificent Seven’ stocks in bubble territory?

Sebastian Orsi, CFA

In our latest instalment of our blog series, Chart of the week, Sebastian Orsi, Senior Research Analyst, examines the 'Magnificent Seven' stocks.

Read More
Your Investments
Chart of the week: Thinking about equity and bond correlation

Elizabeth Geoghegan

In our latest instalment of our blog series, Chart of the week, Elizabeth Geoghegan, Head of Fixed Income Strategy, examines the correlation between equities and bonds.

Read More
Your Investments
Chart of the week: Japanese equities – all that glistens is not gold

Bernard Swords

In our latest instalment of our blog series, Chart of the week, Bernard Swords, Chief Investment Officer, examines the performance of the Japanese equity market.

Read More
Contact Us
Warning: Nothing presented on this website constitutes investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any person. You should not act on it in any way and are advised to obtain professional advice suitable to your own individual circumstances. The value of your investment may go down as well as up. You may lose some or all of the money you invest. Past performance should not be taken as an indication or guarantee of future performance; neither should simulated performance. The value of securities may be subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities.