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Here is why we believe Regeneron Pharmaceuticals (REGN) stock is worthy of consideration as a value investment. It is presently trading nearly 38% lower than its one-year peak, and is also being traded at a price to sales multiple that is beneath the average for the past three years. Nonetheless, it possesses reasonable fundamentals for its current level of valuation. TARRYTOWN, NEW YORK, UNITED STATES - 2020/10/02: View of Corporate and Research and Development Headquarters of Regeneron Pharmaceuticals, Inc. on Old Saw Mill River Road. As President Donald Trump contracted COVID-19 he has been administered a dose of experimental Regeneron treatment, according to a memorandum from the President's physician. According to company press release antibody cocktail REGN-COV2 showing it reduced viral load and the time to alleviate symptoms in non-hospitalized patients with COVID-19. REGN-COV2 is a combination of two monoclonal antibodies (REGN10933 and REGN10987) and was designed specifically to block infectivity of SARS-CoV-2, the virus that causes COVID-19. (Photo by Lev Radin/Pacific Press/LightRocket via Getty Images) Pacific Press/LightRocket via Getty Images Reasonable Revenue Growth: 5.4% LTM and a 0.3% average over the last 3 years. Cash Generative: Approximately 25.0% free cash flow margin and a 27.0% operating margin LTM. No Major Margin Shocks: Regeneron Pharmaceuticals has not experienced any significant margin collapse in the last 12 months. Modest Valuation: Despite positive fundamentals, REGN stock is trading at a PE multiple of 13.6 Opportunity vs S&P: In comparison to the S&P, it presents a lower valuation, higher LTM revenue growth, and superior margins There are other trends worth noting too. Regeneron’s core approved medicines, such as Dupixent - an anti-inflammatory therapy used for eczema, asthma, and other allergic conditions - and Eylea, a leading eye treatment for macular degeneration and diabetic eye disease, hold strong market positions. The company’s pipeline spans multiple therapeutic areas including oncology, rare diseases, immunology, and allergies, with several drugs in late-stage trials offering meaningful future growth potential. To provide some context, Regeneron Pharmaceuticals develops innovative medicines on a global scale, which includes therapies for eye diseases, atopic dermatitis, asthma, and rheumatoid arthritis through processes of discovery, development, manufacturing, and commercialization. Investing in a single stock can be risky; however, there is significant value in a broader, diversified approach that we adopt with Trefis High Quality Portfolio. Let us pose this question: Over the past 5 years, which index do you think the Trefis High Quality Portfolio has outperformed – the S&P 500, S&P 1500 Equal Weighted, or both? The answer could surprise you. Discover how our advisory framework helps stack the odds in your favor. MORE FOR YOU Yet, do these figures represent the complete picture? Check Buy or Sell REGN Stock to determine if Regeneron Pharmaceuticals still possesses an advantage that holds true under scrutiny. Stocks Like These Can Outperform. Here Is Data Presented below are statistics for stocks with a similar selection strategy applied between 12/31/2016 and 6/30/2025. Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively Win rate (the percentage of selections returning positive) of > 70% for both 6-month and 12-month periods Not overly reliant on market downturns. Even during non-crash periods, this strategy has reported a 12-month average return close to 20% with a 67% win rate. But Consider The Risk That being said, REGN is not immune to significant declines. It dropped nearly 69% during the Dot-Com crash, around 58% in the Global Financial Crisis, and 48% during the 2018 correction. Even the more recent shocks—the Covid pandemic and inflation surge—experienced declines of around 25-27%. While the stock maintains solid fundamentals, significant losses can still occur when the market experiences turbulence. However, the risk is not restricted to severe market downturns. Stocks can decline even in stable market conditions – consider events such as earnings announcements, business updates, or changes in outlook. Read REGN Dip Buyer Analyses to see how the stock has bounced back from sharp declines in the past. The Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, boasts a history of comfortably outperforming its benchmark that encompasses all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? As a collective, HQ Portfolio stocks have yielded better returns with lower risks compared to the benchmark index; they experience less volatility, as illustrated in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
