10 Best QQQ Stocks to Buy According to Analysts

3. Moderna Inc. (NASDAQ:MRNA)

Average Upside Potential: 40.68%

Number of Hedge Fund Holders: 39

Moderna Inc. (NASDAQ:MRNA) is a pharmaceutical and biotechnology company that focuses on RNA therapeutics, primarily mRNA vaccines. These vaccines use a copy of a molecule called messenger RNA to carry instructions for proteins to produce an immune response. It is best known for its COVID-19 vaccine, which was developed at record speed and played a crucial role in combating the global pandemic.

The company plans to file for approval of 3 new products this year: a new COVID/flu vaccine, a next-gen COVID vaccine, and an RSV vaccine for adults aged 18-59. While the RSV vaccine rollout and positive EMA opinion boost investor confidence, its broader product pipeline also shows promise, with positive Phase III results for the flu/COVID-19 combo vaccine and alliances with BARDA and Mitsubishi Tanabe Pharma.

Moderna Inc. (NASDAQ:MRNA) plans to discontinue five R&D programs to save $1.1 billion annually by 2027. Additionally, it has provided a cautious sales outlook for 2025 and is now aiming for operational breakeven by 2028. It still plans to submit filings for multiple vaccines and advance clinical trials for mRNA-1647 and mRNA-3705.

Despite the improvements and expansions, its revenue declined 29.94% in Q2 2024, accounting for $241 million. The primary reasons for the decline were lower sales volumes of the COVID-19 vaccine outside the US, increased competitive pressures for respiratory vaccines in the US, and the potential for revenue deferrals from 2024 into 2025.

The company expects sales growth of 40-50% in Q3 2024 and aims to end 2024 with $9 billion in cash. Despite current challenges, Moderna remains optimistic about its future growth, particularly in the EU market. It’s actively responding to the evolving vaccine market through new product launches and partnerships, positioning it for growth.

Baron Health Care Fund made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q1 2023 investor letter:

“Moderna, Inc. (NASDAQ:MRNA) is a leader in the emerging field of mRNA-based vaccines and therapeutics and was one of the three main producers of the COVID vaccine. Shares fell during the quarter. We believe as COVID shifts away from pandemic status and becomes an increasingly commercial market (rather than government funded), there is increasing investor uncertainty around what a booster market could look like, which is pressuring shares. Looking beyond COVID, we think Moderna has the potential to disrupt the biopharmaceutical industry, from infectious disease vaccines to oncology, and we remain shareholders.”