The pharmaceutical industry is often considered a safe haven for investors, due to the steady demand for healthcare-related services. However, the recent spike in popularity for blockbuster weight-loss drugs clearly shows that there's still plenty of room for explosive growth in drug stocks, too - and not just under-the-radar biotechs, either.

Here, we'll take a look at two mega-cap pharmaceutical stocks that could continue to expand on robust global demand for a new generation of anti-obesity treatments. Read on to find out what Wall Street expects next in 2024 for these drug stock standouts.

Pharma Stock #1: Novo Nordisk A/S

Novo Nordisk A/S ADR (NVO), a leading global healthcare company, has made significant strides in the fight against diabetes and other serious chronic conditions, including obesity. The company's strategic focus on these areas has not only established it as a leader in the pharmaceutical industry, but also positioned it at the forefront of developing innovative weight-loss treatments.

NVO is now valued at $514.8 billion by market cap. The stock has rallied more than 65% over the past year, comfortably outperforming the broader market.

The company's success is tightly linked to its innovative obesity treatments. The FDA's recent safety reassurance on anti-obesity drugs is a win for Novo Nordisk, which commands a leading market share in GLP-1 treatments, including Ozempic and Wegovy - the two brand names of semaglutide, indicated separately for diabetes and weight loss, respectively.

The company's Q4 earnings results, released ahead of the bell on Wednesday, beat analysts' expectations on both profit and revenue. EPS for the quarter arrived at $0.71, while revenue was $9.55 billion. Insulin sales slipped 6% overall for NVO in 2023, but that was more than offset by a surge of 154% in obesity care sales.

But Novo Nordisk isn't satisfied with its market-leading position in weight-loss treatments. The Danish pharma giant is also broadening its footprint; in August, it took a decisive step by purchasing Embark Biotech for 15 million euros. 

Further cementing its position, Novo Nordisk has entered into an exclusive license agreement with EraCal, building on a research collaboration that began in 2022. This deal gives Novo Nordisk the exclusive rights to develop and commercialize EraCal’s oral, small-molecule program, potentially adding another feather to its cap in the obesity treatment arena.

For fiscal year 2024, earnings for Novo Nordisk are projected to grow by an impressive 24.3% to $3.32 per share. Revenue for the current fiscal year is expected to rise 21.4% to $40.89 billion. Given the above-average growth forecasts for NVO relative to its sector peers, the shares don't seem unreasonably valued at current levels.

Novo Nordisk also demonstrates its commitment to shareholders through dividends. The company pays a semiannual dividend of $0.88, resulting in a forward yield of 0.76%.

The analyst community is largely bullish on NVO. With 11 analysts weighing in, the consensus is a “moderate buy,” with 8 advocating a “strong buy,” 1 recommending “moderate buy,” 2 suggesting a “hold,” and 1 giving a “moderate sell.” The mean target price for NVO is $120.05, suggesting a potential 4.3% upside from current levels, while the Street-high forecast of $125.50 indicates an 8.7% premium. 

Pharma Stock #2: AstraZeneca Plc

AstraZeneca Plc (AZN) is a titan in the biopharmaceutical industry, deeply involved in the discovery, development, and commercialization of prescription medicines across disease areas like cardiovascular, respiratory, oncology, and notably, obesity. The company's dedication to tackling the obesity epidemic is a key part of its strategy to enhance patient outcomes worldwide.

In the past year, AstraZeneca stock has gained about 5.2%. AZN is now valued at $206.6 billion by market cap.

Unlike NVO, with its commanding market share in the anti-obesity market, niche oncology drug specialist AZN is just starting to get a foothold. The company has invested a whopping $2 billion to acquire an exclusive license for a potential oral weight-loss drug from China's Eccogene, aiming to make its mark in one of the fastest-growing pharmaceutical markets.

Separately, AstraZeneca's albuterol/budesonide rescue inhaler is commercially available in the U.S. as of last month, after receiving FDA approval in 2023. 

In AZN's last quarterly earnings, released in November, the company reported EPS of $0.87, which beat the consensus estimate of $0.80. Quarterly revenue was $11.49 billion - a 4.6% year-over-year increase, albeit slightly below the consensus estimate of $11.55 billion.

The company's next quarterly earnings report is due on Feb. 8, with Wall Street looking for a profit of $0.76 - up 10% year-over-year.

AstraZeneca also maintains a commitment to shareholder returns, with a semiannual dividend of $0.47. At current levels, that's a forward yield of 1.70%.

Analysts have a “strong buy” consensus rating on AZN, with 7 suggesting a “strong buy,” 1 suggesting a “moderate buy,” and 2 suggesting a “hold.” The mean target for AZN is $81.00, representing a potential 21.2% upside from the current price.