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2 Beaten-Down Stocks to Buy and Hold

July 5, 2025
07:45 AM
4 min read
AI Enhanced
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Key Takeaways

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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4 min read

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investment

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Published

July 5, 2025

07:45 AM

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The Motley Fool

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stocksfinancialhealthcarebiotechnologymarket cyclesseasonal analysismarket

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.