In the latest episode of the Stock Take podcast, hosted by John Addis, Founder of Intelligent Investor, the panel dives into the complexities of the current market landscape, offering insights into value investing and the impact of emerging trends on ASX- and globally-listed securities. Joined by analysts Gaurav Sodhi and Nick Cummings, the discussion covers a range of topics from the potential impacts of GLP1 drugs on various sectors to predictions for the year ahead.
The podcast, produced by Intelligent Investor, Australia’s leading value investing research house, provides listeners with a blend of entertainment and expert analysis. As the team navigates the ups and downs of the Aussie share market and beyond, they offer a unique perspective on the factors shaping investment decisions in 2026.
GLP1 Drugs: Transformative Impact on Markets
One of the focal points of the discussion was the rise of GLP1 drugs, which are gaining traction as a solution to obesity. The analysts explored the second-order impacts of these drugs, particularly their influence on the alcohol market. Nick Cummings highlighted the challenges faced by companies like Diageo, noting that GLP1s reduce alcohol cravings, potentially affecting sales.
“In America, obesity peaked in 2022 at 40% and has since fallen to 37%,” Cummings noted, emphasizing the significant impact of GLP1s on consumer behavior.
The conversation also touched on the broader implications for other sectors, such as soft drinks, fast food, and even psychiatric treatments. As more people adopt GLP1s, companies are beginning to adjust their product offerings to align with changing consumer preferences.
Market Leaders in the GLP1 Space
The podcast also examined the leading companies in the GLP1 market, Novo Nordisk and Eli Lilly. Despite Eli Lilly’s recent gains in market share, Novo Nordisk remains a strong contender, trading at a lower price-to-earnings ratio. The discussion underscored the importance of understanding these market dynamics for investors interested in the pharmaceutical sector.
PWR Holdings: A Strategic Shift
Turning to the Australian market, Gaurav Sodhi provided an update on PWR Holdings, a company known for its high-performance cooling systems. PWR’s strategic move into the defense sector has started to pay off, with recent contract wins validating their investment in new production capacity.
“The strategy is working, and that’s why you’ve seen such a big rebound,” Sodhi explained, highlighting the significance of these developments for PWR’s growth prospects.
The discussion also delved into the leadership transition at PWR, with concerns raised about the appointment of a financial executive as CEO in an engineering-focused company.
Predictions for 2026: Navigating Uncertainty
As the podcast wrapped up, the analysts ventured into predictions for the year ahead. Nick Cummings forecasted a growing focus on self-driving cars, driven by advancements from companies like Waymo. Meanwhile, Gaurav Sodhi expressed concerns about the stability of the US dollar as the world’s reserve currency, citing geopolitical and economic shifts.
“Markets are telling you that the US dollar is losing its status,” Sodhi warned, urging investors to consider hard assets as a hedge against potential currency volatility.
The conversation also touched on the broader geopolitical landscape, with discussions about the potential for the US to transition towards autocracy and the implications for global markets.
As the episode concluded, the panel emphasized the importance of value investing in the current climate, advocating for a focus on defensive cash flows and high free cash flow yields to navigate potential market turbulence.
The Stock Take podcast continues to offer valuable insights for investors navigating the complexities of today’s financial landscape, blending expert analysis with engaging discussions on the trends shaping the future of investing.
