2 Beaten-Down Stocks to Buy and Hold
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Equity have been volatile throughout the year. We may or may not be out of the woods, but focusing on the short-term performance of stocks is not the best strategy....
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July 5, 2025
07:45 AM
The Motley Fool
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Equity have been volatile throughout the year
We may or may not be out of the woods, but focusing on the short-term performance of stocks is not the best strategy
Regardless of what happens over the next six months, it's still worth it to invest in companies that look ly to perform well in the long run
It's even better if these stocks can be bought on the dip because they have faced challenges from which they are ly to recover
Here are two great examples to consider: Moderna (MRNA 0. 66%) and Regeneron Pharmaceticals (REGN -0
Image source: Getty Images
Moderna It feels ages ago that Moderna achieved monumental success thanks to its coronavirus-related vaccine work, but the company hasn't been sitting idly by since
Over the past three years, it has recorded significant clinical and regulatory gress
The most recent was the company's phase 3 study for mRNA-1010, a potential influenza vaccine
In the study, mRNA-1010 ved 26. 6% more effective than an apved flu vaccine among patients 50 and older, who are at a higher risk of severe complications and deaths due to the disease
Moderna could earn more wins in the next couple of years
It is a personalized cancer vaccine, mRNA-4157, with Merck
This duct is currently in phase 3 studies after ducing strong mid-stage data
Furthermore, Moderna's investigational cytomegalovirus vaccine, mRNA-1647, is also in late-stage studies
The company has several additional grams in phase 2 and phase 3 clinical trials, as well as other mising candidates in early-stage studies
Moderna is demonstrating that its success in the COVID-19 market was no fluke
The company's mRNA platform allows it to develop and manufacture vaccines quickly, sometimes imving the efficacy of existing options
Meanwhile, there are vast unmet needs to be addressed, including diseases for which no existing vaccines exist, or those, the flu, for which current options are less than optimal
True, Moderna's financial results hardly inspire confidence right now
The company's revenue and earnings have declined significantly over the past three years
But investors would do well to look past that and focus on the highly mising pipeline it offers instead
The bio should imve its financial picture as it launches brand-new ducts on the market in the next few years
That's why the stock is a buy, especially at current levels
Regeneron Pharmaceuticals Regeneron Pharmaceuticals is facing competition -- biosimilar and otherwise -- for Eylea, a medicine for wet age-related macular degeneration
As a result, the company's revenue is moving in the wrong direction
But there are good reasons to stick with the bio
Eylea's sales are also dropping because patients are increasingly switching to Regeneron's newer, high-dose (HD) formulation of the therapy
HD Eylea offers a more convenient dosing schedule
As it earns even more label expansions, HD Eylea should help smooth out Eylea-related losses due to biosimilar erosion
Elsewhere, Regeneron's Dupixent, a medicine for eczema, continues to generate excellent sales
The therapy's recent label expansions, including in COPD and bullous pemphigoid (a rare skin disorder), will help it maintain its momentum
Further, Regeneron has a deep pipeline
It has been making headway in oncology
The company's early-stage gene therapy for genetic deafness has shown real mise
Recently, Regeneron acquired a potential weight loss medicine called HS-20094 from a smaller pharmaceutical company
Regeneron has been attempting to enter the rapidly growing weight management market
One of the company's candidates in this field aims to help patients maintain muscle mass during their weight loss journey, which can sometimes be a challenge
Regeneron's s have dropped by 47% over the trailing-12-month period, but the stock should recover eventually thanks to HD Eylea, Dupixent, and the regulatory gress on the horizon
What's more, the stock recently started paying a dividend
For all those reasons, Regeneron's s are worth in
Sper Junior Bakiny has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Merck and Regeneron Pharmaceuticals
The Motley Fool recommends Moderna
The Motley Fool has a disclosure policy.
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