We recently compiled a list of the 9 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stands against the other stocks on Jim Cramer’s radar.
Jim Cramer, host of Mad Money, recently emphasized the importance of long-term investing, urging investors to focus on the growth prospects of certain pharmaceutical stocks while also answering callers’ questions about certain stocks. Cramer acknowledged that stocks often experience cyclical trends, with some sectors falling out of favor temporarily.
“Look, stocks go in and out of style in the Wall Street fashion show. Whole sectors wallow at times. Right now, healthcare’s in some sort of doghouse the likes of which I’ve never seen.”
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Despite the industry’s struggles, Cramer reflected on his observations at the JPMorgan healthcare conference in San Francisco, where he saw many pharmaceutical companies that he believes are not being properly valued by Wall Street. While the present outlook for these companies may not be particularly stellar, he highlighted the strong and lucrative long-term potential they offer.
“Why am I so willing to focus on the so-called out years? Because the long-term possibilities for these companies, frankly, they’re incredible and by the way, incredibly lucrative too, even as the present is good, but not great.”
He pointed to the ongoing progress in the healthcare sector, particularly with GLP-1 drugs, which have the potential to treat more conditions beyond diabetes and weight loss. Additionally, companies are working on developing oral versions of these treatments, which could offer patients more convenient options. Beyond GLP-1 drugs, healthcare companies are expanding their portfolios with new cancer therapies, treatments for eye care and asthma, and experimental drugs for COVID-19.
“The bottom line: Ask yourself what happens if things get better, please. What if the future is brighter than the past? If that’s the case, and I think it is, then you’ll have a lot of winners with these drug and medical device plays.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on January 14. 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 pharmacist in a lab coat carefully analyzing a vial of medicine for its quality.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 62
Cramer discussed how Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) keeps getting undermined despite the company’s rich pipeline and its strength in drug development.
“How about Regeneron? Now, here’s a stock that traded at $1,211 in August of last year. Now, after declining nearly 4% today alone, it sits at $690. Wow. The issue, Regeneron has this fabulous eyecare franchise being challenged by an Amgen biosimilar. By the way, that’s a biotech version of just a generic drug but that’s all Wall Street cares about.
Doesn’t matter that Regeneron is working on 40 different compounds, many of which could be blockbusters, doesn’t matter if their breakthrough drug Dupixent is indicated for seven gigantic illnesses, asthma, eczema, [and] nasal polyps. This company has never lost its ability to develop new medicines, including the one that likely saved President-Elect Trump’s life when he caught Covid near the end of his first term. For now, none of that seems to matter, but you know, one day it will.”
Regeneron (NASDAQ:REGN) creates and brings to market medications for various health conditions, while also concentrating on the development of innovative therapies for multiple medical issues. Bronte Capital stated the following regarding Regeneron (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 4th on our list of the stocks on Jim Cramer’s radar. 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 timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
