10 Best Falling Stocks To Buy According to Hedge Funds

Page 9 of 9

1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

52 Week Range: $67.75 – $99.56

Current Share Price: $69.63

Number of Hedge Fund Holders: 48 

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) ranks as the best-falling stock to buy according to hedge funds. It was held by 48 hedge funds in Q2 2024 with total stakes worth $2.07 billion. Viking Global was the top shareholder of the company with a position worth $581.5 million as per Insider Monkey’s database.

The company operates as a biotechnology company focused on developing and selling medications for rare genetic diseases. Their portfolio of treatments and therapies includes Vimizim, Naglazyme, Voxzogo, Roctavian, Palynziq, and Roctavian.

During the second quarter of fiscal 2024, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) reported record revenue growth. The total revenue for the quarter improved 20% year-over-year to reach $712 million. The revenue growth was driven by an increase in global demand for Voxzogo, which is a daily injection for achondroplasia, a common form of dwarfism. Voxzogo revenue for the second quarter came in at $184 million indicating a 62% increase year-over-year. Moreover, the enzyme-related therapies of the company also contributed to the record revenue by improving by 15% during the same time.

As a result of this robust performance management has increased the full-year guidance for fiscal 2024 and is now expecting revenue between $2.75 billion and $2.825 billion with operating margins between 26% and 27%. The prioritized pipeline of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) also looks attractive with BMN 351 and BMN 349 expected to enter the clinic in early 2025.

Parnassus Value Equity Fund stated the following regarding BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) in its first quarter 2024 investor letter:

“We also closed out two positions, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), to invest in other opportunities with more potential upside. BioMarin’s risk/return profile has become less attractive due to an ill-timed drug launch and increased competition. We sold our profitable position in BioMarin in favor of other higher-conviction positions in the portfolio.”

While we acknowledge the potential of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9