We recently published a list of Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently. In this article, we are going to take a look at where Biogen Inc. (NASDAQ:BIIB) stands against other NASDAQ 100 stocks that Jim Cramer discussed recently.
Jim Cramer, the host of Mad Money, recently shared his perspective on the stock market, especially reflecting on the events of 2024. He emphasized that years like 2024 don’t come around often, where everything feels so clear and the winners are so apparent. According to Cramer, if investors tried to get too creative or overcomplicate their strategies, they likely missed out on the obvious winners.
“If you tried to get creative, you tried to get clever, you missed out on some truly idiot-proof winners. The losers on the other hand, well, they were not as easy to spot because in many cases they were the market’s former winners, even if they long ago lost their way.”
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As part of his annual analysis on Mad Money, Cramer examined the top and bottom performers of the Nasdaq 100 in 2024, offering insights into what worked and what didn’t. He reviewed how, in many instances, investors tend to become frustrated with stocks that are overhyped, knowing deep down that eventually, something better will come along. He likened these overly loved stocks to a “mouse trap,” where the price could only go down from such lofty heights, warning that many investors would regret not jumping off the metaphorical spaceship before the crash.
Cramer shared his thoughts on the five best performers in the NASDAQ 100 for 2024, calling it a “real good collection of winners” and expressing a genuine fondness for these stocks. He also noted that, while the Nasdaq 100 losers may have appeared to have suffered dramatic declines, the reality was more nuanced.
“The Nasdaq 100 losers, though they aren’t so horrible as the declines would make you think, but they got clobbered because they were emblematic of golden calves, worshipped for a long time before being revealed as not so special after all.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A patient receiving physical therapy for a neurological disease.
Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 49
Cramer highlighted Biogen Inc. (NASDAQ:BIIB) as one of the worst-performing stocks in 2024 and mentioned that it has flown “too close to the sun for too long”.
“Third, Biogen’s been running on fumes while it works on its Alzheimer’s drug, but the fumes, basically a very good MS drug, in a crowded field, aren’t enough. Not with the unmet projections for its Alzheimer’s formulation or competition coming from Eli Lilly. Hence the stock’s 41% decline. Biogen’s traveled too close to the sun for too long. It feels real burned out here.”
Biogen (NASDAQ:BIIB) develops and delivers therapies for neurological and neurodegenerative diseases, offering treatments for various conditions. The company also develops various products for disorders like Parkinson’s disease, dementia, and neuropsychiatric conditions, with several in different stages of development. While the company exceeded earnings expectations in the third quarter, it faced challenges within its multiple sclerosis (MS) segment. The revenue from the MS product line declined by 9%, primarily due to ongoing competition from generic drugs and issues related to patents.
To address its financial pressures and reposition the company for growth, the company has implemented cost-saving measures, including workforce reductions and discontinuation of less promising drug candidates. The company has raised its annual adjusted profit per share forecast to a range of $16.10 to $16.60, slightly above its previous projection of $15.75 to $16.25 per share.
In July, regulators rejected Biogen (NASDAQ:BIIB) and Eisai’s Leqembi due to concerns over brain swelling and its limited impact on cognitive decline. However, in November 2024, the European Union’s drug regulator reversed its decision, recommending approval for certain early Alzheimer’s patients as per Reuters. Jefferies analyst Michael Yee noted that the EU could represent up to 30% of worldwide peak sales for Eisai and Biogen, though challenges remain due to the drug’s need for additional diagnostic tests and regular brain scans. Yee also mentioned that the recommendation could help support the drug’s pricing and reimbursement, which is determined by individual EU member states.
Overall, BIIB ranks 5th on our list of NASDAQ 100 stocks that Jim Cramer discussed recently. While we acknowledge the potential of BIIB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIIB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.