Is Regeneron Pharmaceuticals Stock Underperforming the S&P 500?

REGN -0.56% ^GSPC +0.54%

Tarrytown, New York-based Regeneron Pharmaceuticals, Inc. (REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases. Valued at $82.5 billion by market cap, the company's portfolio boasts nine marketed drugs - Eylea, Dupixent, Praluent, Kevzara, Evkeeza, Libtayo, Inmazeb, Arcalyst, and Zaltrap.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and REGN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the biotechnology industry. REGN has a strong product portfolio, including marketed products such as Eylea and Dupixent. The company's innovative pipeline and successful product commercialization drive its financial performance.

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Despite its notable strength, REGN slipped 2.3% from its 52-week high of $803.42, achieved on Nov. 14, 2024. Over the past three months, REGN stock gained 33.5%, outperforming the S&P 500 Index’s ($SPX) 5.4% gains during the same time frame.

In the longer term, shares of REGN rose 10.2% on a YTD basis and climbed 4.2% over the past 52 weeks, underperforming SPX’s YTD gains of 15.8% and 13.1% returns over the last year.

To confirm the bullish trend, REGN has been trading above its 50-day moving average since early July, with slight fluctuations. The stock has been trading above its 200-day moving average since late October.

REGN's underperformance stems from challenges such as increased scrutiny of drug pricing, regulatory uncertainty, and competition from well-resourced pharmaceutical giants, all of which could hinder growth.

On Oct. 28, REGN shares jumped 11.8% after reporting its Q3 results. Its adjusted EPS of $11.83 beat Wall Street expectations of $9.44. The company’s revenue was $3.8 billion, beating Wall Street's $3.6 billion forecast.

In the competitive arena of biotechnology, Incyte Corporation (INCY) has taken the lead over REGN, showing resilience with a 53% gain on a YTD basis and a 41.2% uptick over the past 52 weeks.

Wall Street analysts are reasonably bullish on REGN’s prospects. The stock has a consensus “Moderate Buy” rating from the 28 analysts covering it. While REGN currently trades above its mean price target of $769.61, the Street-high price target of $910 suggests a 16% upside potential.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com