10 Stocks That Will Bounce Back According To Hedge Funds

7. Moderna, Inc. (NASDAQ:MRNA)

Year-To-Date Loss: 62.82%

Number of Hedge Fund Investors In Q3 2024: 34

Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company that rose to prominence because of its coronavirus vaccine. While the virus does not dominate the conversation anymore, the majority of Moderna, Inc. (NASDAQ:MRNA)’s revenue comes through its respiratory vaccines. Additionally, the draw-down in global demand for coronavirus vaccines has also meant that the firm has had to invest aggressively in research and development to develop new products. The aggressive R&D spending is also visible in Moderna, Inc. (NASDAQ:MRNA)’s trailing twelve-month R&D expenses of $4.8 billion are just $200 million shy of its $5 billion revenue over the same time period. Consequently, the firm’s hypothesis depends not only on its respiratory vaccine sales but also on next-generation vaccines such as mRNA-1283 and mRNA-1083.

Moderna, Inc. (NASDAQ:MRNA) is also developing a vaccine for norovirus, also called viral gastroenteritis. This vaccine could unlock additional revenue for the firm, and here’s what management had to say about it during the Q3 2024 earnings call:

“On Slide 22 is the design of our Phase III study for our norovirus vaccine candidate. As a reminder, norovirus is a gastrointestinal disease with high unmet need and no approved vaccines on the market. The Phase III study is designed to test the efficacy, safety and immunogenicity of our vaccine in 25,000 adults aged 18 and older. It is randomized one-to-one, observer blind, and placebo controlled.”