Viking Therapeutics, Inc.

Key Points
Disappointing tolerability results accompanied impressive body weight loss data.
It's a setback, but Viking Therapeutics still has strategic options.
The trial may have contained a tough sample group.
Shares in Viking Therapeutics (NASDAQ: VKTX) crashed by 35.9% in the week to Friday morning. The decline comes in a week when the company released its top-line results from its phase 2 trial of its lead drug VK2735 (oral dosing) for weight loss. A successful oral formulation could be of substantive value due to the convenience and ease of use of an oral formulation compared to a subcutaneous (injected) formulation.
What went wrong
Unfortunately, the phase 2 results were mixed. On the one hand, the body weight reductions were comparable to Eli Lilly's phase 3 trial for orforglipron (oral), with VK2735 achieving a decrease of mean body weight of 12.2% at the highest dosage compared to a 12.4% reduction at the highest dosage for orforglipron.
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However, there were tolerability issues, with 20% of patients on VK2735 dropping out due to adverse effects. This compares unfavorably to a discontinuation rate of 10.3% at the highest dosage for orforglipron. It is also at odds with the phase 1 results for VK2735 (oral), whereby "no clinically meaningful differences" were reported for adverse effects between treated patients and the placebo group.
What it means to investors
Clinical trials can yield unusual results. Purely by way of illustration, readers should note that treatment discontinuation rates due to adverse effects in the placebo group were 2.6% in the Eli Lilly phase 3, compared to 13% in the placebo group in the Viking phase 2 trial. Whether this implies something about the patient sampling in the trials is open to question.
Although the results are disappointing, Viking can work on optimizing the dose and consider taking VK2735 (oral) through phase 3. Alternatively, outside of an outright bid for the company, it can partner with a larger pharmaceutical company to achieve this goal.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Shares in Viking Therapeutics Crashed This Week

Eli Lilly and Company LLY is a key player in the diabetes and obesity drug market, mainly due to the significant popularity and success of its GLP-1 therapies — Mounjaro for diabetes and Zepbound for weight loss.
Mounjaro and Zepbound face strong competition from Novo Nordisk’s NVO semaglutide medicines, Ozempic for diabetes and Wegovy for obesity. Despite being on the market for only around three years, Mounjaro and Zepbound have become key top-line drivers for Lilly, with demand rising rapidly.
The obesity market is expected to expand to $100 billion by 2030, according to data from Goldman Sachs, which means fierce competition is inevitable. Though Lilly and Novo Nordisk presently dominate the market, they are making rapid progress in the development of more potent and convenient GLP-1-based candidates in their clinical pipeline to beat future competition.
Lilly is investing broadly in obesity and has several new molecules currently in clinical development. This includes two late-stage candidates, orforglipron, a once-daily oral GLP-1 small molecule, and retatrutide, a GGG tri-agonist and some mid-stage candidates, bimagrumab, eloralintide and mazdutide.
Lilly has already announced positive data from two out of the seven phase III studies on orforglipron in patients with type II diabetes and obesity involving over 3,600 participants. In the first study, called ACHIEVE-1, in type II diabetes patients, orforglipron lowered A1C by an average of 1.3%-1.6% across doses and also reduced weight by an average of 16lb (7.9%) at the highest dose. Top-line data from the second study called ATTAIN-1 in people with obesity (but without type II diabetes), announced in August, showed that patients taking the highest dose of orforglipron lost more than 27 pounds or 12.4% of their body weight.
However, the 12.4% weight loss achieved with the highest 36 mg dose of Lilly’s oral GLP-1 candidate, orforglipron in the ATTAIN-1 study fell short of investor expectations. Investors were probably expecting orforglipron to match Wegovy’s average weight loss in a range of 13-15% or even exceed that percentage. Patient discontinuation rates in the study were also considered high, with as high as 24.4% of patients in the 36 mg dose arm discontinuing treatment. Orforglipron is being viewed as a key candidate in Lilly's obesity pipeline, which has the potential to transform the obesity treatment space as both Zepbound and Wegovy are weekly injections.
No doubt, the weight-loss pill data was a disappointment. Many investors feel that the potential market for orforglipron is now less than previously expected. However, some investors feel the market reaction to the data was overblown and perceive that orforglipron may be used for maintenance therapy after patients lose weight with injectable products like Zepbound or Wegovy. Orforglipron has the potential to be approved as it has shown efficacy and safety consistent with injectable GLP-1 therapies while offering the convenience of a once-daily pill. There is significant demand for single oral pills for weight loss that can be manufactured at scale to meet global demand.
Lilly plans to report data from four additional orforglipron phase III studies in diabetes and obesity over the next five months. Lilly plans to file regulatory applications for orforglipron in obesity in the fourth quarter of 2025 and for type II diabetes in the first half of 2026.
It is also evaluating orforglipron in late-stage studies in other disease areas like obstructive sleep apnea and hypertension and also plans to initiate a new phase III study in people with knee osteoarthritis pain in overweight or obesity later this year.
Lilly is conducting late-stage studies on its other key candidate, retatrutide, a GGG tri-agonist, in obesity, obstructive sleep apnea, knee osteoarthritis, chronic low back pain and type II diabetes. It expects the first data readout from a phase III study on retatrutide in osteoarthritis of the knees later in 2025.
In conclusion, Lilly has a deep pipeline in obesity and diabetes with a range of oral and injectable medications with different mechanisms of action. We believe the orforglipron setback, though quite big, is not the end of the road for Lilly’s obesity pipeline plans.
Competition Heating Up in the Obesity Space
Several other companies, like Amgen AMGN and Viking Therapeutics VKTX, are also making rapid progress in the development of more potent and convenient GLP-1-based candidates in their clinical pipeline.
Amgen is developing MariTide, a GIPR/GLP-1 receptor, as a single dose in a convenient autoinjector device with a monthly and maybe less frequent dosing. In March, Amgen initiated two phase III studies on MariTide in obesity as part of its comprehensive MARITIME phase III program. Since June, Amgen has initiated two more phase III studies in other obesity related conditions.
Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. The company recently announced mixed top-line results from a mid-stage study evaluating the safety and efficacy of the oral formulation of VK2735. Though patients on the highest drug dose lost up to 12.2% of their body weight after 13 weeks of daily dosing compared with 1.3% in the placebo group, a significant number of patients also dropped out of the study.
Phase III obesity studies with the subcutaneous formulation of VK2735 were recently initiated.
NVO, LLY and VKTX are racing to introduce oral weight-loss pills, as Wegovy and Zepbound are both injectable drugs. Novo Nordisk has already filed a new drug application (NDA) for an oral version of Wegovy and also has several next-generation candidates in its obesity pipeline, like CagriSema (a combination of semaglutide and cagrilintide) and an oral pill, amycretin (a dual GLP-1 and amylin receptor agonist). The FDA is expected to decide on the Wegovy oral formulation NDA in the fourth quarter.
LLY’s Stock Price, Valuation and Estimates
Lilly’s stock has declined 7.6% so far this year against the industry’s increase of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 25.29 forward earnings, higher than 14.64 for the industry. However, the stock is trading below its 5-year mean of 34.54.
Image Source: Zacks Investment Research
Estimates for Lilly’s 2025 earnings have risen from $21.99 to $22.81 per share in the past 30 days, while those for 2026 have risen from $30.79 to $31.01 over the same timeframe.
Image Source: Zacks Investment Research
LLY’s Zacks Rank
Lilly has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is Orforglipron Pill Setback End of the Road for LLY's Obesity Plans?

Shares of Viking Therapeutics VKTX plunged 36% in the past week after it reported mixed top-line results from a mid-stage study evaluating the safety and efficacy of the oral formulation of its experimental obesity drug, VK2735.
Though patients on the highest drug dose lost up to 12.2% of their body weight after 13 weeks of daily dosing compared with 1.3% in the placebo group, a significant number of patients also dropped out of the study.
Though management did assure investors that they might be able to mitigate the side effects of oral VK2735 by gradually moving patients from low doses to higher ones, the results have raised negative sentiments around Viking’s stock. While many investors raised questions on the drug’s tolerability and safety profile, some even cited dampened prospects for Viking as an acquisition target.
Let’s analyze the company’s strengths and weaknesses to understand how to play the stock amid the recent share price decline.
Competition in the Obesity Space Heating Up
The obesity market has garnered much interest lately, with two companies, Eli Lilly LLY and Novo Nordisk NVO, dominating this space with their respective injectable obesity drugs Zepbound and Wegovy. According to research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $100 billion by 2030.
In order to capitalize on the rapidly expanding obesity market, Eli Lilly, Novo Nordisk and Viking Therapeutics are racing to introduce oral weight-loss pills. Initially, investors thought LLY could dominate the oral obesity space like it is doing in the injectables space. However, the recently reported results from a late-stage study on Lilly’s once-daily oral GLP-1 pill were underwhelming, and, like Viking, also reported higher patient discontinuation rates.
These setbacks have likely paved the way for Novo Nordisk’s resurgence in the obesity space, which has been looking for a way to gain an edge over archrival Lilly. Currently, there are no approved pills for weight-loss management. A regulatory filing is currently under review by the FDA seeking approval for an oral version of Wegovy. Notably, Novo was also the first to capitalize on the opportunity with injectable obesity drugs. If the filing for the oral version is approved, Novo could once again take charge of the space.
Though Viking is also evaluating a subcutaneous version of VK2735 in two recently initiated late-stage studies, the data is not likely to be expected until the end of 2026 or early 2027.
Lack of Marketed Products: A Woe for VKTX
The company does not have any marketed drugs in its portfolio, nor does it have any collaboration partners. As a result, it has to shoulder significant cash burn due to ongoing clinical studies. This was also likely the reason that Viking has now decided to focus only on the obesity pipeline while exploring collaboration opportunities for its non-alcoholic steatohepatitis (NASH) and X-linked adrenoleukodystrophy (X-ALD) candidates.
Assuming that the late-stage results on VK2735 SC are positive, they are still at least a couple of years away from potential commercialization.
VKTX Stock Performance, Valuation & Estimates
In the year so far, shares of Viking Therapeutics have plunged 38% against the industry’s 4% growth. The stock has also underperformed the broader Medical sector and the S&P 500 during this timeframe, as shown in the chart below. VKTX shares are currently trading below the 50 and 200-day moving averages.
VKTX Stock Underperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
The company is trading at a premium to the industry. Going by the price/book ratio, the stock currently trades at 3.63 times trailing 12-month book value, higher than 2.98 times for the industry.
Image Source: Zacks Investment Research
Estimates for Viking Therapeutics’ 2025 and 2026 loss per share have widened significantly in the past 30 days.
Image Source: Zacks Investment Research
How to Play VKTX Stock
In our opinion, investors should steer clear of this Zacks Rank #4 (Sell) stock. Viking has its fair share of problems, including the lack of a stable income stream and the presence of pharma giants like Lilly and Novo in its target market spaces.
Although the company boasts a strong cash position ($808 million as of June 2025-end) and carries no debt, recent concerns over the tolerability and safety profile of oral VK2735 raise red flags. Adding to this, the stock’s premium valuation and downward revisions to earnings estimates make it difficult to justify building or increasing positions at this stage.
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Post Obesity Pill Results Reveal: Buy, Sell or Hold VKTX Stock?

Key Points
The safety and tolerability data were at odds with an earlier phase 1 trial, and not as good as a comparable drug trial result from Eli Lilly.
Viking may decide to take VK2735 (oral form) through phase 3, or a peer could step in and buy or partner with it.
Shares of Viking Therapeutics (NASDAQ: VKTX) rose by almost 10% at 11 a.m. ET today. This follows a significant fall the previous day on the release of its eagerly awaited top-line results from a phase 2 trial of its weight loss drug VK2735 in oral form. The oral formulation offers convenience over subcutaneous (injected) formulations.
Viking Therapeutics VK2735 phase 2 results
The phase 2 results were successful in weight loss reduction, but less so in safety and tolerability. In comparison, a phase 3 trial for pharma giant Eli Lilly's (NYSE: LLY) orforglipron in weight loss resulted in a mean percentage weight loss of 7.8% at the lowest dosage to 12.4% at the highest dosage. Meanwhile, the VK2735 phase 2 ranged from a mean reduction of 2.3% to 12.2% at the highest dosage.
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The key difference is that the discontinuation rate due to adverse effects in Eli Lilly's phase 3 trial was 10.3% at the highest dosage, compared to 20% overall in the Viking phase 2 trial.
What it means to investors
A few analysts are saying the sell-off is overdone, and with good reason. Recall that Viking's trial, although disappointing, is only a phase 2 with 280 enrolled patients, compared to Eli Lilly's phase 3 with 4,500.
It's also at odds with the earlier phase 1 trial, which indicated good safety and tolerability.
As such, a larger company may step in to try to improve tolerability and take VK2735 (oral form) through phase 3 by buying Viking or partnering with it. However, it could be a while before there's any upside catalyst to the stock price coming from trial data, as the phase 3 trial for oral VK2735 only started in June. It's a disappointing update, but there's still upside potential for the stock from here.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Viking Therapeutics Bounced Back Today

Shares of Viking Therapeutics VKTX plunged 42% yesterday after it reported top-line data from the phase II VENTURE-Oral Dosing study, which evaluated the safety and efficacy of the oral formulation of its experimental obesity drug, VK2735.
Though the study successfully achieved its primary and secondary endpoints, a large number of patients dropped out due to adverse events.
More on VKTX’s VENTURE-Oral Dosing Study Results
The 13-week study enrolled around 280 adults who were either obese or overweight and had at least one weight-related co-morbid condition. These patients were evenly randomized to one of the six dosing arms of the drug or placebo.
Per Viking, body-weight reductions were progressive at all doses throughout the study. Patients on the highest dose (120 mg) of oral VK2735 lost up to 12.2% of their body weight (26.6 lbs) after 13 weeks of daily dosing, compared with 1.3% in the placebo group. The company noted that the weight loss had not plateaued, suggesting potential for additional benefit in a longer study.
However, what led to the share price crash was the higher-than-expected patient discontinuation rates in the study. Per Viking, about 28% of VK2735-treated participants dropped out, compared with 18% for placebo. This raised questions about the drug’s tolerability and drove the steep sell-off, with some investors also citing dampened prospects for Viking as an acquisition target.
Year to date, Viking’s shares have lost over 39% against the industry’s 3% growth.
Image Source: Zacks Investment Research
Recent Developments in the Obesity Pill Space
This marks the second time this month that a much-awaited study on an obesity pill disappointed investors. Earlier this month, pharma giant Eli Lilly LLY reported a similar setback when it announced results from a late-stage study on orforglipron, its once-daily oral GLP-1 pill for obesity. While data from the study showed that treatment with the LLY drug achieved up to 12.4% weight loss, it missed investors’ expectations. Like Viking, Lilly also reported higher patient discontinuation rates in the ATTAIN-1 study.
The obesity market has garnered much interest lately, with two companies, Lilly and Novo Nordisk NVO, dominating this space with their respective injectable obesity drugs, Zepbound and Wegovy. According to research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $100 billion by 2030.
In order to capitalize on the rapidly expanding obesity market, Eli Lilly, Novo Nordisk and Viking Therapeutics are racing to introduce oral weight-loss pills. However, it seems very likely that Novo Nordisk may become the first one to market an obesity pill — a regulatory filing is currently under review by the FDA seeking approval for an oral version of Wegovy. Notably, Novo was also the first to capitalize on the opportunity with injectable obesity drugs.
Viking Therapeutics, Inc. Price
VKTX’s Zacks Rank
Viking currently carries a Zacks Rank #4 (Sell).
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Viking Therapeutics' Stock Tanks on Mixed Data From Obesity Pill Study

The S&P 500 Index ($SPX) (SPY) Tuesday closed down by -0.59%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.39%. September E-mini S&P futures (ESU25) fell -0.54%, and September E-mini Nasdaq futures (NQU25) fell -1.37%.
Stock indexes settled mixed on Tuesday, with the Nasdaq 100 falling to a 1.5-week low and the Dow Jones industrials posting a new all-time high. Tuesday’s selloff in chip makers and the Magnificent Seven megacap technology stocks weighed on the overall market.
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On the positive side, Home Depot recovered from early losses and closed up more than +3% to push the Dow Jones industrials to a new record high after it reported a +3% jump in July comparable same-store sales. Lowes and Target will report their earnings on Wednesday, and Walmart will report on Thursday.
Lower bond yields on Tuesday were supportive of stocks, as the 10-year T-note yield fell -3 bp to 4.30%. US government debt garnered support Tuesday after S&P Global Ratings affirmed its AA+ long-term rating and A-1+ short-term rating on US debt and said the US can maintain its credit strength despite the fiscal hit of its recent spending bill because tariff revenues will “generally offset weaker fiscal outcomes.”
Tuesday’s US housing news was mixed. US Jul housing starts unexpectedly rose +5.2% m/m to a 5-month high of 1.428 million, stronger than expectations of a decline to 1.297 million. However, Jul building permits, a proxy for future construction, fell -2.8% m/m to a 5-year low of 1.354 million, weaker than expectations of -0.5% m/m to 1.386 million.
Diplomatic talks over the war in Ukraine continue to make headway. Ukrainian President Zelenskiy said he came away with a commitment from President Trump late Monday to join security guarantees for any peace deal and reserve discussion on territorial swaps with Russia for later. President Trump is pushing for a summit between Presidents Putin and Zelenskiy soon, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000 and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve’s annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 87% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 54% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets on Tuesday settled mixed. The Euro Stoxx 50 rose to a 4.75-month high and closed up +0.89%. China’s Shanghai Composite fell from a 10-year high and closed down -0.02%. Japan’s Nikkei Stock 225 retreated from a new record high and closed down -0.38%.
Interest Rates
September 10-year T-notes (ZNU25) Tuesday closed up +8 ticks, and the 10-year T-note yield fell -3.2 bp to 4.302%. Sep T-notes rallied Tuesday after S&P Global Ratings said that higher revenues from tariffs will help soften the blow to the US’s fiscal health from the president’s tax cuts, enabling the country to maintain its AA+ long-term credit rating. The weakness in stocks on Tuesday also supported safe-haven demand for T-notes. Gains in T-notes were limited due to concerns that last week’s bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month’s FOMC meeting.
European government bond yields on Tuesday were mixed. The 10-year German bund yield fell -1.3 bp to 2.750%. The 10-year UK gilt yield rose to a 2.5-month high of 4.756% and finished up by +0.2 bp to 4.740%.
Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The weakness in the Magnificent Seven stocks on Tuesday was a drag on the overall market. Nvidia (NVDA) closed down more than -3%, and Meta Platforms (META) closed down more than -2%. Also, Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) closed down more than -1%. In addition, Apple (AAPL) fell -0.14%.
Advanced Micro Devices (AMD) closed down more than -5% to lead chipmakers lower after GF Securities downgraded the stock to hold from buy. Also, Marvell Technology (MRVL) closed down more than -5%, and ARM Holdings Plc (ARM) closed down more than -4%. In addition, Broadcom (AVGO) closed down more than -3%, and Qualcomm (QCOM), Microchip Technology (MCHP), ON Semiconductor (ON), GlobalFoundries (GFS), NXP Semiconductors NV (NXPI), and Micron Technology (MU) closed down more than -1%.
Viking Therapeutics (VKTX) closed down more than -42% after a Phase 2 trial of its oral weight loss drug showed 28% of patients discontinued treatment over tolerability concerns.
Fabrinet (FN) closed down more than -12% after it said it expects to see a sequential dip in datacom segment revenue in its fiscal Q1, citing supply constraints for some critical components.
Amer Sports (AS) closed down more than -4% after forecasting Q3 adjusted operating margin of 12% to 13%, below the consensus of 13%.
Vertiv Holdings (VRT) closed down more than -4% after GLJ Research initiated coverage on the stock with a recommendation of sell and a price target of $112.
Medtronic Plc (MDT) closed down more than -2% after reporting Q1 adjusted operating margin of 23.6%, weaker than the consensus of 23.7%.
Intel (INTC) closed up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after SoftBank Group Corp agreed to buy $2 billion of the company’s stock.
Trucking companies moved higher on Tuesday. JB Hunt Transport Services (JBHT) and Knight-Swift Transportations Holdings (KNX) closed up more than +3%. Also, Old Dominion Freight Line (ODFL), FedEx (FDX), and Schneider National (SNDR) closed up more than +2%. In addition, CSX Corp (CSX) closed up more than +1%.
Home Depot (HD) recovered from an early decline and closed up more than +3% to lead gainers in the Dow Jones Industrials after reporting that July comparable same-store sales rose more than +3%.
Prologis (PLD) closed up more than +5% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $118.
Best Buy (BBY) closed up more than +3% after announcing the launch of a new third-party seller platform, which more than doubles the number of its available products online.
Palo Alto Networks (PANW) closed up more than +3% after it forecast 2026 revenue of $10.48 billion-$10.53 billion, stronger than the consensus of $10.44 billion.
Earnings Reports(8/20/2025)
Analog Devices Inc (ADI), Coty Inc (COTY), Estee Lauder Cos Inc/The (EL), Lowe’s Cos Inc (LOW), Nordson Corp (NDSN), Target Corp (TGT), TJX Cos Inc/The (TJX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Mostly Lower as Chip Makers and Megacap Tech Companies Retreat

The S&P 500 Index ($SPX) (SPY) today is down by -0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.03%. September E-mini S&P futures (ESU25) are down -0.34%, and September E-mini Nasdaq futures (NQU25) are down -1.06%.
Stock indexes are mixed today, with the Dow Jones Industrials posting a new all-time high and the Nasdaq 100 falling to a 1-week low. Weaknesses in chip makers and in the Magnificent Seven stocks today are weighing on the overall market.
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On the positive side, Home Depot recovered from early losses and is up more than +4% to lead the Dow Jones industrials to a new record high after it reported a +3% jump in July comparable same-store sales. Lowes and Target will report their earnings on Wednesday, and Walmart will report on Thursday.
Lower bond yields today are supportive of stocks, with the 10-year T-note yield down -2 bp to 4.31%. US government debt garnered support today after S&P Global Ratings affirmed its AA+ long-term rating and A-1+ short-term rating on US debt and said the US can maintain its credit strength despite the fiscal hit of its recent spending bill because tariff revenues will "generally offset weaker fiscal outcomes."
Today's US housing news was mixed. US Jul housing starts unexpectedly rose +5.2% m/m to a 5-month high of 1.428 million, stronger than expectations of a decline to 1.297 million. However, Jul building permits, a proxy for future construction, fell -2.8% m/m to a 5-year low of 1.354 million, weaker than expectations of -0.5% m/m to 1.386 million.
Diplomatic talks over the war in Ukraine continue to make headway. Ukrainian President Zelenskiy said he came away with a commitment from President Trump late Monday to join security guarantees for any peace deal and reserve discussion on territorial swaps with Russia for later. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal, with Ukrainian President Zelenskiy and European leaders continuing their meeting with President Trump in Washington. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000 and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve's annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, "I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after." Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 rose to a 4.75-month high and is up +0.92%. China's Shanghai Composite fell from a 10-year high and closed down -0.02%. Japan's Nikkei Stock 225 retreated from a new record high and closed down -0.38%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +6 ticks, and the 10-year T-note yield is down -2.5 bp to 4.308%. Sep T-notes are moving higher today after S&P Global Ratings said that higher revenues from tariffs will help soften the blow to the US's fiscal health from the president's tax cuts, enabling the country to maintain its AA+ long-term credit rating. The weakness in stocks today is also supporting safe-haven demand for T-notes. Gains in T-notes are limited due to concerns that last week's bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month's FOMC meeting.
European government bond yields today are moving lower. The 10-year German bund yield is down -1.4 bp to 2.749%. The 10-year UK gilt yield fell from a 2.5-month high of 4.756% and is down by -2.2 bp to 4.716%.
Swaps are discounting the chances at 6% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The weakness in the Magnificent Seven stocks is a drag on the overall market. Nvidia (NVDA) and Meta Platforms (META) are down more than -2%. Also, Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) are down more than -1%.
Advanced Micro Devices (AMD) is down more than -4% to lead chipmakers lower after GF Securities downgraded the stock to hold from buy. Also, Marvell Technology (MRVL) is down more than -3%, and Broadcom (AVGO) and ARM Holdings Plc (ARM) are down more than -2%. In addition, Qualcomm (QCOM) is down more than -1%.
Viking Therapeutics (VKTX) is down more than -43% after a Phase 2 trial of its oral weight loss drug showed 28% of patients discontinued treatment over tolerability concerns.
Fabrinet (FN) is down more than -12% after it said it expects to see a sequential dip in datacom segment revenue in its fiscal Q1, citing supply constraints for some critical components.
Amer Sports (AS) is down more than -4% after forecasting Q3 adjusted operating margin of 12% to 13%, below the consensus of 13%.
Medtronic Plc (MDT) is down more than -3% after reporting Q1 adjusted operating margin of 23.6%, weaker than the consensus of 23.7%.
Vertiv Holdings (VRT) is down more than -3% after GLJ Research initiated coverage on the stock with a recommendation of sell and a price target of $112.
Intel (INTC) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100 after SoftBank Group Corp agreed to buy $2 billion of the company's stock.
Cybersecurity stocks are climbing today, led by a +4% jump in Palo Alto Networks (PANW) after it forecast 2026 revenue of $10.48 billion-$10.53 billion, stronger than the consensus of $10.44 billion. CyberArk Software Ltd (CYBR) is also up more than +4% on the news.
Trucking companies are climbing today. JB Hunt Transport Services (JBHT) is up more than +4%, and Old Dominion Freight Line (ODFL), Knight-Swift Transportations Holdings (KNX), and Schneider National (SNDR) are up more than +3%. In addition, CSX Corp (CSX) and FedEx (FDX) are up more than +2%.
Home Depot (HD) recovered from an early decline and is up more than +4% to lead gainers in the Dow Jones Industrials after reporting that July comparable same-store sales rose more than +3%.
Prologis (PLD) is up more than +4% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $118.
Caterpillar (CAT) is up more than +1% after Evercore ISI upgraded the stock to outperform from in line with a price target of $476.
Earnings Reports(8/19/2025)
Amer Sports Inc (AS), Home Depot Inc/The (HD), Jack Henry & Associates Inc (JKHY), James Hardie Industries PLC (JHX), Keysight Technologies Inc (KEYS), Medtronic PLC (MDT), Toll Brothers Inc (TOL), Viking Holdings Ltd (VIK).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Pressured by Weakness in Tech

The S&P 500 Index ($SPX) (SPY) today is down by -0.10%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.52%. September E-mini S&P futures (ESU25) are down -0.13%, and September E-mini Nasdaq futures (NQU25) are down -0.60%.
Stock indexes are slightly lower today as retail stocks begin to report their earnings. The weakness in the Magnificent Seven stocks today is weighing on the overall market.
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On the positive side, Home Depot recovered from early losses and is up more than +4% to lead the Dow Jones industrials higher after reporting a +3% jump in July comparable same-store sales. Lowes and Target will report their earnings on Wednesday, and Walmart will report on Thursday.
Lower bond yields today are supportive of stocks, with the 10-year T-note yield down -2 bp to 4.31%. US government debt garnered support today after S&P Global Ratings affirmed its AA+ long-term rating and A-1+ short-term rating on US debt and said the US can maintain its credit strength despite the fiscal hit of its recent spending bill because tariff revenues will "generally offset weaker fiscal outcomes."
Today's US housing news was mixed. US Jul housing starts unexpectedly rose +5.2% m/m to a 5-month high of 1.428 million, stronger than expectations of a decline to 1.297 million. However, Jul building permits, a proxy for future construction, fell -2.8% m/m to a 5-year low of 1.354 million, weaker than expectations of -0.5% m/m to 1.386 million.
Diplomatic talks over the war in Ukraine continue to make headway. Ukraine President Zelenskiy said he came away with a commitment from President Trump late Monday to join security guarantees for any peace deal and reserve discussion on territorial swaps with Russia for later. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal, with Ukrainian President Zelenskiy and European leaders continuing their meeting with President Trump in Washington. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000 and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve's annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, "I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after." Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 rose to a 4.75-month high and is up +0.75%. China's Shanghai Composite fell from a 10-year high and closed down -0.02%. Japan's Nikkei Stock 225 retreated from a new record high and closed down -0.38%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +6 ticks, and the 10-year T-note yield is down -2.5 bp to 4.308%. Sep T-notes are moving higher today after S&P Global Ratings said that higher revenues from tariffs will help soften the blow to the US's fiscal health from the president's tax cuts, enabling the country to maintain its AA+ long-term credit rating. The weakness in stocks today is also supporting safe-haven demand for T-notes. Gains in T-notes are limited due to concerns that last week's bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month's FOMC meeting.
European government bond yields today are moving lower. The 10-year German bund yield is down -0.2 bp to 2.761%. The 10-year UK gilt yield fell from a 2.5-month high of 4.756% and is down by -0.3 bp to 4.735%.
Swaps are discounting the chances at 6% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Viking Therapeutics (VKTX) is down more than -39% after a Phase 2 trial of its oral weight loss drug showed 28% of patients discontinued treatment over tolerability concerns.
Fabrinet (FN) is down more than -10% after it said it expects to see a sequential dip in datacom segment revenue in its fiscal Q1, citing supply constraints for some critical components.
Medtronic Plc (MDT) is down more than -5% to lead losers in the S&P 500 after reporting Q1 adjusted operating margin of 23.6%, weaker than the consensus of 23.7%.
Advanced Micro Devices (AMD) is down more than -3% after GF Securities downgraded the stock to hold from buy.
Amer Sports (AS) is down more than -2% after forecasting Q3 adjusted operating margin of 12% to 13%, below the consensus of 13%.
Vertiv Holdings (VRT) is down more than -2% after GLJ Research initiated coverage on the stock with a recommendation of sell and a price target of $112.
Cybersecurity stocks are climbing today, led by a +4% jump in Palo Alto Networks (PANW) after it forecast 2026 revenue of $10.48 billion-$10.53 billion, stronger than the consensus of $10.44 billion. CyberArk Software Ltd (CYBR) is up more than +5%, and Zscaler (ZS) and CrowdStrike Holdings (CRWD) are up more than +0.50%.
Intel (INTC) is up more than +10% to lead gainers in the S&P 500 and Nasdaq 100 after SoftBank Group Corp agreed to buy $2 billion of the company's stock.
Home Depot (HD) recovered from an early decline and is up more than +4% to lead gainers in the Dow Jones Industrials after reporting that July comparable same-store sales rose more than +3%.
Prologis (PLD) is up more than +3% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $118.
Caterpillar (CAT) is up more than +1% after Evercore ISI upgraded the stock to outperform from in line with a price target of $476.
Peabody Energy (BTU) is up more than +1% after deciding to walk away from a $3.8 billion deal to buy the steelmaking coal business from Anglo American Plc following a fire at Anglo's Australian mine.
Earnings Reports(8/19/2025)
Amer Sports Inc (AS), Home Depot Inc/The (HD), Jack Henry & Associates Inc (JKHY), James Hardie Industries PLC (JHX), Keysight Technologies Inc (KEYS), Medtronic PLC (MDT), Toll Brothers Inc (TOL), Viking Holdings Ltd (VIK).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Slightly Lower as Retailer Earnings Arrive

Novo Nordisk (NYSE: NVO), the Danish drugmaker that's been riding high ever since it began putting out Ozempic and Wegovy GLP-1 injectables for treatment of diabetes and weight loss, got another shot in the arm yesterday -- one that helped the stock dodge the market downturn entirely and end the day somewhat in the green. The same news that helped Novo stock out yesterday, moreover, is today turning into solid gains as Novo Nordisk stock rises 2.5% through 11 a.m. ET.
And what news was that, you ask?
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Novo Nordisk now has an Ozempic pill.
Novo Nordisk's big news day
Citing a Novo spokesperson, pharmaceuticals news site BioPharmaDive reported yesterday that Novo Nordisk "earlier this year" submitted to the Food and Drug Administration an application to approve an oral form of its semaglutide GLP-1 weight loss drug.
BioPharmaDive notes that Novo has already reported positive clinical results with the new GLP-1 pill, which showed patients losing as much as 15% of their body weight over the course of a 64-week phase 3 trial.
Is Novo Nordisk stock a buy?
Curiously, this is both good news and bad news for Novo Nordisk stock. On the good news front, it stands to reason that if Ozempic is already a popular product despite its requiring patients to repeatedly stick themselves in the stomach with needles, then an oral form of Ozempic, no more complicated than swallowing a pill, will be even more popular -- and help Novo Nordisk to continue dominating this market.
On the other hand, BioPharmaDive notes that the pill Novo wants FDA approval for contains 70 times as much semaglutide as injectable Ozempic. The journal points out that such a large increase in dosage will require an even larger increase in Novo's production capacity, which only recently reached a point at which it can satisfy the injectables market.
Long story short, Novo has a big opportunity here, but needs to grow if it's to make the most of it.
Should you invest $1,000 in Novo Nordisk right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Novo Nordisk Stock Popped Today

Key Points
Viking Therapeutics' new GLP-1 weight loss pill, VK2735, helped patients shed 12.2% of their body weight in 13 weeks.
The pill is proving "safe and well-tolerated."
However, one-fifth of participants in the study complained of the side effects and dropped out of Viking's clinical trial.
Viking Therapeutics (NASDAQ: VKTX) stock collapsed on Tuesday, down 41.4% through 10:25 a.m. ET after reporting what pharmaceutical analysts are calling "mixed results" for its new GLP-1 weight loss pill, VK2735.
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Viking and VK2735
In a press release this morning, Viking put a brave face on results of its "Phase 2 VENTURE-Oral Dosing Trial of VK2735 Tablet Formulation." The study achieved primary and secondary endpoints, said Viking, "demonstrating statistically significant reductions [of 12.2%] in body weight with once-daily VK2735 dosing as compared to placebo." Weight loss continued after the 13 weeks were done, with no "plateau" observed in weight reduction post-study.
Viking also said the 13-week study showed VK2735 to be "safe and well-tolerated" by patients, with 99% of gastrointestinal side effects mild or moderate. And yet, in a disturbing note, it seems 20% of the participants in Viking's study disagreed, dropping out of the study "due to side effects," as one analyst wrote.
This, it seems, may be what's worrying Viking investors today -- this, and the fact that the 12.2% weight loss from VK2735 isn't all that much better than the 11.5% weight loss rival Eli Lilly recently reported from its own GLP-1 weight loss pill study.
Is Viking Therapeutics stock a buy?
Don't get me wrong: A weight loss pill that requires no injections or needles and helps people lose nearly 1% of their body weight in a week sounds pretty great. It just may not mean that Viking has come up with a wonder drug to beat all other wonder drugs.
It means Viking may not steal as much market share from Eli Lilly and Novo Nordisk as investors were hoping. And if that means Viking stock will continue losing money, it might mean Viking stock is a sell.
Should you invest $1,000 in Viking Therapeutics right now?
Before you buy stock in Viking Therapeutics, consider this:
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.