We recently published a list of 10 Best Stocks to Buy and Hold For 2025. In this article, we are going to take a look at where Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) stands against other best stocks to buy and hold for 2025.
Stocks have been performing well lately as they seem to have been influenced by the excitement around artificial intelligence (AI) as well as the new administration. CNBC reported that stocks rose on January 22, with the S&P 500 hitting a new all-time high, as technology stocks rallied on AI optimism and President Trump’s new term in office.
On Wednesday, January 22, stocks finished higher as all 3 of the major indexes ended the session in the green. The S&P 500 increased by 0.61% after reaching an intraday record of 6,100.81 before closing at 6,086.37. The Nasdaq Composite excelled and rose 1.28% to reach 20,009.34, underscoring the outperformance of tech stocks. The Dow Jones Industrial Average advanced by 130.92 points, or 0.3%, to close at 44,156.73.
President Trump also recently announced a joint venture named “Stargate,” involving OpenAI, Oracle, and Softbank, to invest at least $500 billion in AI infrastructure within the US. Stocks rose because of solid earnings reports and investors continued to pile into the AI space following this recent announcement by the new administration.
Keith Lerner, Truist’s co-chief investment officer, pointed out that a combination of a resilient economy, easing inflation, stabilizing of interest rates, and a strong start to the earnings season has created a favorable environment for the market. He noted that AI and technology continue to be key drivers of this bull market.
Another key factor playing a role in this market rally is the optimism around Trump’s agenda. Investors are hoping that Trump will ease regulations and reduce corporate taxes, which could lead to an increase in profits.
Methodology
To compile our list of the 10 best stocks to buy and hold for 2025, we used the Finviz stock screener to look for stocks that analysts believe will gain more than 30% in the next 12 months. We sorted our results based on market capitalization and picked the top 25 stocks. Finally, we ranked the 10 best stocks to buy and hold for 2025 based on their average price target upside potential according to analysts as of January 22, 2025. Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? 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).
Is Regeneron Pharmaceuticals Inc. (REGN) the Best Stock to Buy and Hold For 2025?
A pharmacist in a lab coat carefully analyzing a vial of medicine for its quality.
Average Price Target Upside Potential According to Analysts: 66.17%
Number of Hedge Fund Holders: 62
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is an American biotechnology company that is primarily focused on discovering, developing, and commercializing medicines for serious diseases. The company currently has 13 approved or authorized medicines and about 40 product candidates in clinical development across various therapeutic areas. Regeneron Pharmaceuticals Inc.’s (NASDAQ:REGN) medicines and pipeline are focused on eye diseases, allergic and inflammatory diseases, cancer, cardiovascular diseases, neurological diseases, hematologic conditions, and rare diseases.
The company is making significant progress with its products and pipeline. In September 2024, the US Food and Drug Administration (FDA) approved Dupixent as an add-on maintenance treatment for adults with inadequately controlled chronic obstructive pulmonary disease (COPD) and an eosinophilic phenotype, making it the first biologic medicine approved in the US, European Union, and China for this condition. According to Regeneron Pharmaceuticals Inc. (NASDAQ:REGN), more than one million patients around the world are being treated with Dupixent, with more to follow after the recent approvals for COPD.
Baron Funds, an investment management company, in its “Baron Health Care Fund” third quarter 2024 investor letter noted the success of Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) in developing several blockbuster drugs, including Eylea and Eylea HD for retinal diseases and Dupixent for various immunological and inflammatory diseases. Additionally, the company has an exciting new product pipeline with candidates in different stages of development. The pipeline includes an innovative treatment for severe food allergy, a combination therapy for melanoma and lung cancer, bispecific antibodies for blood cancers, and Factor XI antibodies for preventing blood clots. Based on Regeneron Pharmaceuticals Inc.’s (NASDAQ:REGN) proven track record of success in new drug discovery and development, Baron Health Care Fund is optimistic that the pipeline will yield success that could drive the stock up.
Overall, REGN ranks 3rd on our list of best stocks to buy and hold for 2025. While we acknowledge the potential of REGN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than REGN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
