We recently published a list of Jim Cramer’s Latest Portfolio: Top 9 Stocks to Buy and Sell. Since Moderna Inc (NASDAQ:MRNA) ranks 6th on the list, it deserves a deeper look.
Jim Cramer is exuberant about the Federal Reserve’s aggressive rate cut.
“Believe me, there are few things more friendly than a 50 basis point rate cut,” Cramer said in a recent program.
The CNBC host said that he has reminded his viewers repeatedly that when the Fed is your “enemy” you should stick to recession-proof stocks that can produce consistent earnings despite market slowdowns.
“Once the Fed is done tightening and we start seeing signs of impending rate cuts you need to load up on the cyclicals, the companies that see massive earnings growth when the economy accelerates,” Cramer reminded his viewers about his advice on how to play the interest-rate game.
Jim Cramer has been talking about all sorts of stocks during his latest programs. In this article we picked 9 important stocks he’s bearish/bullish on and analyzed these companies in detail. With each stock we have mentioned its hedge fund sentiment. 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).
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Moderna Inc (NASDAQ:MRNA)
Number of Hedge Fund Investors: 39
When asked about Moderna Inc (NASDAQ:MRNA) in a latest program, Cramer said:
“Moderna has been a big disappointment.”
Moderna Inc (NASDAQ:MRNA) has been getting tarnished amid downgrades from Wall Street. It was one of the most shorted stocks in August. Investors are looking for growth catalysts for the stock beyond COVID.
The company recently cut its R&D budget by $1.1 billion between 2024 and 2027. The cancellation of five pipeline programs also signaled reduced confidence in its COVID-19 vaccine revenue or the potential of the shelved projects.
Moderna Inc (NASDAQ:MRNA) late-stage pipeline also faces significant challenges. The combined flu-COVID vaccine, expected to be filed for FDA approval soon, is entering a competitive field. Novavax and Sanofi are developing a similar shot, with trials expected to yield results by mid-2025. Moderna’s RSV vaccine, approved for adults 60 and over, also faces competition from GSK’s Arexvy, which holds a first-mover advantage in a key demographic (ages 50-59).
The company’s mRNA vaccines are also expected to face headwinds amid a wider reluctance in the public. A recent survey showed that only 43% of Americans plan to get the updated COVID-19 vaccine this year. Concerns over side effects, such as myocarditis and Guillain-Barré syndrome, linked to mRNA vaccines, continue to affect vaccine uptake.
Moderna Inc (NASDAQ:MRNA) projected 2025 revenue is $2.5 billion to $3.5 billion, giving it a high forward price-to-sales ratio of 10.2 times, well above the industry average of 3.8 times.
Overall, Moderna Inc (NASDAQ:MRNA) ranks 6th on Insider Monkey’s list titled Jim Cramer’s Latest Portfolio: Top 9 Stocks to Buy and Sell. While we acknowledge the potential of Moderna Inc (NASDAQ:MRNA), 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 MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
