We recently published a list of 10 Worst Performing Large Cap Stocks to Buy According to Analysts. In this article, we are going to take a look at where Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stands against other worst performing large cap stocks to buy according to analysts.
How Did The Market Perform in Q4 2024?
On January 21, Russell Investment released its Equity Factor report highlighting key trends and performances in global equity markets during the fourth quarter of 2024. The period was marked by significant events, including the conclusion of the US presidential election, which led to heightened expectations of economic growth, deregulation, and lower taxes. These factors contributed to a robust return of 2.7% for the Russell 1000 Index, which tracks the performance of large-cap US companies by market capitalization.
READ ALSO: 10 Best Performing Large Cap Stocks to Buy According to Analysts and 10 Best Small-Cap Growth Stocks to Buy Now.
On the other hand, Developed ex-US Large Cap and Emerging Markets faced declines of 7.4% and 7.8%, respectively. This downturn was attributed to political instability in countries like France and Germany, as well as uncertainty surrounding potential US tariffs. The divergence in performance extended to small-cap stocks as well, with the Russell 2000 Index experiencing a slight increase of 0.3%, while the Developed ex-US Small Cap Index declined by 7.8%.
As per the report, Russell Investments’ global factor portfolios showed varied performance during the quarter. Meanwhile, the Global Large Cap Growth and Momentum portfolios outperformed their benchmarks with excess returns of 2.5% and 1.1%, respectively. On the other hand, the Global Large Cap Low Volatility, Size, Value, and Quality portfolios underperformed, with excess returns ranging from -1.4% to -0.2%. This marked a shift from the previous quarter, where Value and Low Volatility were the top performers.
Moreover, the performance of factor portfolios varied across regions. Meanwhile, the Momentum and Growth factors showed consistent outperformance across US and non-US markets, with Momentum delivering excess returns between +0.1% and +2.1%. However, Growth underperformed in Emerging Markets. On the other hand, the Low Volatility factor underperformed in all regions except Emerging Markets, where it outperformed by +1.0%.
Our Methodology
To curate the list of 10 worst-performing large-cap stocks to buy according to analysts, we used the Finviz stock screener. We aggregated a list of large-cap stocks that have performed negatively over the past year, however, analysts still see upside potential over the next 12 months. Next, we cross-checked the analyst upside potential of each stock from CNN and ranked these stocks in ascending order of analysts’ upside potential. We have also added the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 28th, 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A pharmacist in a lab coat carefully analyzing a vial of medicine for its quality.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Market Capitalization: $74.87 Billion
1-Year Performance: -28.90%
Number of Hedge Fund Holders: 68
Analyst Upside Potential: 43.11%
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company that develops medicines to treat serious diseases. It manufactures and sells treatments for conditions like eye diseases, cancer, allergies, heart and metabolic issues, neurological disorders, infectious diseases, and other rare conditions. Its strategic edge lies in the use of advanced technologies including platforms like VelociSuite that help design fully human antibodies and innovative therapies more efficiently.
On February 25, the company received a buy rating from Canaccord Genuity’s analyst John Newman. The analyst kept his price target of $1,152 while noting that Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) has a strong pipeline and is making strategic advancements, particularly related to its gene therapy, DB-OTO. The investigational gene therapy has shown significant improvements in hearing for children with profound genetic deafness caused by otoferlin mutations. Moreover, Clinical trials demonstrated measurable gains in hearing through Pure Tone Audiometry (PTA) and Auditory Brainstem Response (ABR), with some children achieving near-normal hearing levels. The therapy also has a favorable safety profile, with no drug-related adverse events reported.
Beyond DB-OTO, the company’s pipeline includes programs like the Factor XI initiative, which is expected to support revenue stability amidst competitive pressures on existing products like EYLEA. It is one of the worst-performing large-cap stocks to buy according to analysts.
Amalthea Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2024 investor letter:
“Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) – the biggest loser in the book by absolute dollars. Regeneron is a large position for us. We wrote the position up in June 2021 letter. The stock has almost doubled since the original write-up, but it is down on the month. Allow some time for an explanation There are two ways of looking at Regeneron. The sum-of-the-parts way and the platform way.
Regeneron has 11 approved drugs but two comprise most of the cash flows. The two are Eylea and Dupixent.
Eylea is a VEGF drug that is injected into patients’ eyes and stops macular degeneration (the main cause of blindness in old people). The drug stops capillaries growing in the retina…” (Click here to read the full text)
Overall, REGN ranks 2nd on our list of worst performing large cap stocks to buy according to analysts. While we acknowledge the potential of REGN 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 REGN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.