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Health

2 Undervalued Healthcare Stocks to Buy in July

by Chief Editor
written by Chief Editor

Novo Nordisk (NVO) and Pfizer (PFE) stand out as the cheapest large-cap healthcare names in 2026, trading at forward price-to-earnings multiples of 14x and 8x, respectively. Both companies currently grapple with significant headwinds—including drug pricing reforms and patent cliffs—but maintain strong free cash flow and upcoming data catalysts, according to data from 24/7 Wall St.

Why Are Novo Nordisk and Pfizer Trading at Bargain Multiples?

Value investors are increasingly eyeing the healthcare sector as a “bargain bin” following a period of sector-wide multiple compression. According to 24/7 Wall St., the downward pressure stems from a combination of post-COVID-19 hangovers, evolving drug pricing policies, and the looming threat of patent cliffs. For Novo Nordisk, the market has recalibrated shares following a 29% decline over the past 12 months. Pfizer, meanwhile, trades at a forward P/E of 8x as it works to transition away from its pandemic-era revenue reliance.

Did you know?
Novo Nordisk is a Danish ADR. Investors should be aware that dividends are subject to foreign withholding tax at the source before reaching brokerage accounts.

What Is the Growth Case for Novo Nordisk?

Novo Nordisk’s valuation reflects a business generating a 71% return on equity and a 62% operating margin, despite trading at a trailing P/E of 12. The primary growth engine is the oral version of Wegovy. As reported by 24/7 Wall St., the drug captured 65% of new U.S. prescriptions in its category during its first quarter, generating $2.26 billion. CEO Mike Doustdar noted the tablet is now used by more than one million patients. However, the company faces a significant margin risk: U.S. list price cuts of approximately 50% for Wegovy and 35% for Ozempic are scheduled for January 2027.

How Is Pfizer Navigating Its Post-COVID Transition?

Pfizer is focusing on pipeline conversion and cost-efficiency to offset the decline in its COVID-19 franchises. Comirnaty and Paxlovid sales fell 59% and 63% respectively in Q1 2026. To counter this, the company is prioritizing its core portfolio, where products like Padcev (up 39%) and Nurtec (up 41%) are seeing operational growth. According to 24/7 Wall St., Pfizer has secured a Vyndamax patent settlement extending U.S. exclusivity to June 2031. CEO Albert Bourla has expressed confidence in the company’s oncology and obesity assets, with 20 pivotal studies planned for 2026.

Metric Novo Nordisk (NVO) Pfizer (PFE)
Forward P/E 14x 8x
Dividend Yield Varies (ADR) 7.23%

What Should Investors Watch in August?

The window for positioning is narrow, as both companies are set to report Q2 earnings in early August 2026. Novo Nordisk’s performance will be evaluated on whether the volume of its oral Wegovy can offset looming price cuts. Pfizer’s results will be measured against its ability to execute on oncology and obesity pipeline developments. While Novo offers optionality in the GLP-1 market, Pfizer provides a 7.23% dividend yield supported by established products like Eliquis.

Pro Tip:
Monitor the net debt to EBITDA ratio. Pfizer currently sits at 3.26x, which has led management to state that no share repurchases are anticipated in 2026.

Frequently Asked Questions

Why are Pfizer’s earnings and revenue figures so volatile?

Pfizer’s recent financial results have been heavily influenced by the sharp decline in COVID-19-related product sales, specifically Comirnaty and Paxlovid, which saw double-digit percentage drops in Q1 2026.

Watch CNBC's full interview with Novo Nordisk CEO Mike Doustdar

What is the biggest risk for Novo Nordisk investors?

The primary risk is the compression of cash flow resulting from planned U.S. price cuts for Wegovy and Ozempic, combined with the failure of the CagriSema drug to meet primary endpoints in the REDEFINE 4 obesity trial.

When do these companies report their next earnings?

Pfizer is scheduled to report Q2 earnings on August 4, 2026, followed by Novo Nordisk on August 5, 2026.

For questions regarding this report or to request corrections, please contact the editorial team at 24/7 Wall St.

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Tech

3 Top Quantum Computing Stocks to Buy in July

by Chief Editor
written by Chief Editor

Quantum computing firms IonQ, Rigetti Computing, and D-Wave Quantum reported significant growth in bookings and remaining performance obligations during the first quarter of 2026, though all three stocks faced double-digit declines in June. According to 24/7 Wall St., these companies currently trade at extreme price-to-sales multiples while navigating a commercialization timeline that NVIDIA CEO Jensen Huang estimates is at least 15 years away.

Why Quantum Stocks Face Extreme Volatility

The quantum computing sector remains highly speculative, with valuations often detached from immediate profitability. According to 24/7 Wall St., price-to-sales multiples for these companies have reached extreme levels, with reports citing figures as high as 109 for IonQ, 836 for Rigetti, and 791 for D-Wave. These valuations, combined with a lack of consistent profit, make the sector sensitive to market sentiment shifts.

In June alone, the sector saw sharp pullbacks, with IonQ shares falling 25%, Rigetti down 24%, and D-Wave shedding 21%. Investors are currently weighing this market volatility against the long-term technological potential of quantum systems.

Did you know?

Quantum computing is often categorized as a “lottery ticket” investment due to the high degree of uncertainty regarding when the technology will reach large-scale commercial viability.

How IonQ Leads the Revenue Ramp

IonQ (NYSE: IONQ) maintains the largest market cap in the group at approximately $20.11 billion. According to company data, Q1 2026 revenue reached $64.67 million, a 755% increase year-over-year, which exceeded management’s guidance by 30%. CEO Niccolo de Masi described the period as the “biggest quarter” in the company’s history.

How IonQ Leads the Revenue Ramp

The company’s growth is anchored by $470 million in remaining performance obligations—a 554% increase from the previous year. Additionally, IonQ reported its first sale of a 256-qubit Tempo system to the University of Cambridge. Despite this, the company faces significant financial hurdles, including a projected 2026 adjusted EBITDA loss between $310 million and $330 million, and substantial stock-based compensation of $128.52 million in the first quarter.

What Drives Rigetti’s Technology-First Strategy

Rigetti Computing (NASDAQ: RGTI) is positioning itself as a pure-play technology provider. Its 108-qubit Cepheus-1-108Q system is now generally available through major cloud platforms, including Amazon Braket and Microsoft Azure Quantum. CEO Subodh Kulkarni identified the system as one of the most powerful gate-based quantum computers currently available.

$IONQ IonQ Q1 2026 Earnings Conference Call

Financial results show Q1 2026 revenue grew to $4.40 million from $1.47 million in the prior year. The firm maintains a strong balance sheet with $569 million in cash and no debt. However, investors have noted recent insider selling: CTO David Rivas sold 499,328 shares in late May, and Director Ray Johnson sold over 207,000 shares in June, according to 24/7 Wall St.

How D-Wave Uses Dual-Modality to Capture Market Share

D-Wave Quantum (NYSE: QBTS) is the only firm in this group pursuing both annealing and gate-model quantum computing. The company reported a 2,000% year-over-year surge in bookings, totaling $33.40 million for the first quarter of 2026. This growth was driven by major contracts, including a $20 million deal with Florida Atlantic University.

While headline revenue appeared to decline 81% year-over-year, the company noted this was due to the absence of a large one-time system sale that occurred in the previous year’s period. D-Wave is currently scaling its Advantage3 annealer and working toward a 100-logical-qubit gate-model system by 2032.

Pro Tip:

When evaluating quantum stocks, monitor remaining performance obligations (RPO) and bookings. These metrics often provide a clearer picture of future revenue visibility than current quarterly earnings, which can be skewed by lumpy, one-time hardware sales.

Frequently Asked Questions

Are quantum computing stocks considered safe investments?

No. According to 24/7 Wall St., these stocks are speculative, pre-profit bets that carry significant risk and are typically viewed as outside the scope of a core portfolio.

Frequently Asked Questions

Why did quantum stocks drop in June?

The sector experienced a broad correction, with IonQ, Rigetti, and D-Wave all losing at least 20% of their value. Analysts attribute this to extreme valuation multiples and concerns over the long timeline for commercialization.

What should investors watch in August?

Investors are looking toward Q2 earnings reports in August to determine if the booking momentum seen in early 2026 is durable or if the sector is undergoing a necessary repricing.

What is your take on the quantum sector’s long-term potential? Are you keeping these names on your watchlist for the upcoming earnings season? Let us know your thoughts in the comments below.

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Business

SETM Outperforms S&P 500 With 150% Annual Gains

by Chief Editor
written by Chief Editor

The Sprott Critical Materials ETF (NASDAQ: SETM) recorded a 103% gain over the trailing 12 months ending June 8, 2026, significantly outperforming the 23% return of the SPDR S&P 500 ETF Trust (NYSEARCA: SPY). However, recent volatility has seen SETM pull back 14% in the last month as momentum-driven capital exits the concentrated thematic sector, according to market data.

Why Did Critical Materials Outperform the S&P 500?

The surge in SETM is attributed to three primary drivers: heightened industrial demand, government policy, and a structural repricing of commodity assets. According to Sprott’s internal analysis, the electrification of AI data centers and the expansion of grid storage systems have forced a repricing of essential inputs like copper, uranium, lithium, and nickel. Unlike the S&P 500, which reflects broad market sentiment, SETM tracks a basket of companies—including Freeport-McMoRan and Albemarle—that operate as strategic assets in the global energy transition.

Did you know?

The Sprott Critical Materials ETF (SETM) reached $100 million in assets under management (AUM) in September 2025, just over two years after its February 2023 launch.

How Do Government Policies Impact Commodity Pricing?

Government initiatives have created a “floor” for critical mineral demand, according to reports from the Trump administration. In February 2026, Vice President JD Vance and Secretary of State Marco Rubio established a critical minerals club involving 50 nations. This agreement, combined with a proposed $12 billion federal stockpile, aims to incentivize non-Chinese supply chains. Because 60% of global demand is met through international trade, these policy signals provide long-term support for miners in the U.S., Canada, and Australia, regardless of short-term price fluctuations.

What Should Investors Watch After Recent Pullbacks?

The recent 14% monthly decline in SETM indicates that the initial “momentum trade” phase has cooled, according to data from Intellectia AI, which downgraded the fund from a “Strong Buy” in January to a “Sell” reading by late February 2026. For investors looking ahead, three indicators matter most:

  • Spot Prices: Monitor LME copper and Sprott Physical Uranium Trust prices as leading indicators for power-intensive AI infrastructure.
  • Appropriations: Watch for actual funding of the $12 billion stockpile, rather than just press releases.
  • Trade Policy: Observe China’s export controls on rare earths and graphite; any tightening of these controls typically acts as a bullish catalyst for non-Chinese miners.
Pro Tip:

When tracking thematic ETFs, compare year-to-date returns against the broader S&P 500. While SETM is up 13% YTD compared to 8.4% for SPY, the margin of outperformance has compressed significantly compared to the 12-month trailing figures.

Frequently Asked Questions

What is the primary difference between SETM and SPY?

SETM is a concentrated thematic fund focused on raw materials like uranium and lithium, whereas SPY is a broad-market index fund tracking the S&P 500. SETM carries higher volatility and is sensitive to industrial policy and commodity cycles.

Sprott offering metals exposure with Critical Materials ETF

Why did SETM drop in the last month despite a strong year?

According to market observations, the drop reflects a rotation by momentum buyers who booked profits after a significant run-up. Concentrated funds tend to experience sharper reversals than diversified indices.

Is the commodity supercycle still active?

Sprott’s thesis suggests the supercycle is driven by deglobalization and energy security. While the thesis remains intact, current market valuations reflect a “consensus” trade, making entry prices more critical now than they were in 2024.

Are you adjusting your portfolio to account for commodity volatility? Share your thoughts in the comments below or subscribe to our weekly newsletter for more market analysis.

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Tech

The Staggering Number Jensen Huang Just Revealed Changes Everything About AI

by Chief Editor
written by Chief Editor

Beyond the Chatbot: The Massive Power Hunger of Agentic AI

For the last few years, the world has been captivated by Generative AI. We’ve marveled at chatbots that can write poetry, code apps and summarize emails. But according to Nvidia CEO Jensen Huang, we are moving toward a paradigm shift that makes today’s AI look like a toy: Agentic AI.

While Generative AI is reactive—you give it a prompt, it gives you an answer—Agentic AI is proactive. These are autonomous agents that can plan, execute multi-step workflows, query databases, and verify their own work without a human holding their hand. They don’t just talk; they do.

The catch? This leap in capability comes with a staggering energy bill. Huang has noted that the compute required for agentic AI is rising by as much as 1,000% compared to generative AI. We aren’t just looking at a software update; we are witnessing an infrastructure crisis in the making.

Did you know? The “Jevons Paradox” explains why AI efficiency isn’t saving us. As Nvidia makes chips more energy-efficient, the cost of performing a task drops, which actually increases the total demand for those tasks, leading to higher overall energy consumption.

The Grid at a Breaking Point

The U.S. Electricity grid has been relatively stagnant for decades, with power consumption growing at a sleepy 1% to 2% annually. That era is over. The sudden explosion of data centers is creating a demand shock not seen since the post-WWII industrial boom.

From Instagram — related to Breaking Point, United States

Consider the numbers: U.S. Data centers already draw roughly 41 gigawatts of power, a 150% increase over just five years. Some projections suggest that by 2028, data centers could consume up to 12% of the total electricity in the United States.

This isn’t just a corporate problem—it’s a consumer problem. In Northern Virginia, the world’s densest hub for data centers, Dominion Energy recently proposed its first base-rate increase since 1992. When tech giants strain the grid, ordinary households often end up subsidizing the buildout through higher monthly utility bills.

The Capital Expenditure War

The scale of investment is almost incomprehensible. The “Big Four”—Amazon, Microsoft, Google, and Meta—have collectively committed over $710 billion in AI infrastructure capital expenditures for 2026 alone. To put that in perspective, a handful of tech companies are now spending more on infrastructure than the entire global oil and gas production industry.

The Nuclear Renaissance: SMRs and Dedicated Power

Tech giants have realized that the traditional power grid cannot keep up with the demands of 10 billion digital AI agents. They are bypassing government timelines and accelerating the commercialization of nuclear energy.

The Nuclear Renaissance: SMRs and Dedicated Power
Jensen Huang Nvidia AI conference 2026

The focus has shifted toward Small Modular Reactors (SMRs). These are smaller, safer, and more flexible than traditional nuclear plants. The pipeline for conditional agreements between data center operators and SMR projects has already jumped from 25 gigawatts to 45 gigawatts in a short window.

Real-world moves:

  • Google has secured a power purchase agreement with Kairos Power for SMR capacity.
  • Amazon Web Services (AWS) acquired a data center campus directly adjacent to Talen Energy’s 2.5-gigawatt Susquehanna nuclear plant to secure dedicated, carbon-free power.
Pro Tip for Investors: Stop looking only at the “silicon.” While chip stocks like NVDA get the headlines, the real long-term value may lie in the “fuel.” Keep a close eye on nuclear developers, transmission equipment manufacturers, and specialized energy utilities.

Future Trends: Where the Puck is Heading

As we move toward a world of autonomous AI agents, the “compute-to-energy” ratio will become the most key metric in tech. We can expect several key trends to dominate the next few years:

1. The Rise of “Energy-Adjacent” Data Centers

We will see fewer data centers built near cities and more built directly next to power sources. Whether it’s a hydroelectric dam or a nuclear reactor, the goal is to minimize transmission loss and avoid grid congestion.

‘All Of It Justified…’, NVIDIA’s Jensen Huang Explains Exactly Why We Are NOT In AI Bubble | Watch

2. AI-Driven Energy Management

Ironically, Agentic AI will be used to solve the energy crisis it created. We will see AI agents managing the grid in real-time, shifting workloads to different time zones or regions based on where renewable energy (wind/solar) is peaking.

3. The Push for Sovereign AI Infrastructure

Nations will begin treating AI compute and energy as a matter of national security, similar to how they treat oil reserves. Expect government-backed “AI Power Zones” with dedicated energy subsidies.

For more insights on the intersection of tech and energy, check out our latest analysis on Sustainable Computing Trends or explore our guide to The Future of SMR Technology.

Frequently Asked Questions

What is the difference between Generative AI and Agentic AI?
Generative AI responds to prompts (reactive). Agentic AI can plan, use tools, and execute complex tasks autonomously over long periods (proactive).

Why does Agentic AI require so much more power?
Unlike a chatbot that processes a request and then goes idle, an agent may run continuous loops—reading, coding, verifying, and correcting—which keeps GPUs running at high intensity for much longer.

What are SMRs?
Small Modular Reactors are advanced nuclear reactors that are smaller and more flexible than traditional plants, allowing them to be deployed closer to the end-user, such as a data center.

Will AI make my electricity bill go up?
This proves possible. In regions with high data center density, utilities may raise rates for all customers to fund the necessary grid upgrades required to support AI demand.

Join the Conversation

Do you think the shift to Agentic AI is worth the energy cost, or are we building a digital tower of Babel that the grid can’t support? Let us know your thoughts in the comments below!

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