Here's Why You Should Consider Buying Regeneron Pharma (REGN)'s Shares

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large-cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is Regeneron Pharmaceuticals Inc. (NASDAQ:REGN). Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases. Over the past month, Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) rose by 1.57%, but its shares lost 51.89% of their value over the last 12 months. On August 12, 2025, Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) shares closed at $556.56, with a market capitalization of $58.99 billion.

Here is what they have to say about Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) in their investor letter:

"Regeneron Pharmaceuticals’ risk/reward profile appeared attractive following a significant stock derating due to near-term headwinds. We believe the market is underappreciating Regeneron’s long-term growth potential, which is supported by its intellectual property, robust internal research and development capability and a strong antibody platform. Additionally, Regeneron is expected to generate above-average sales growth driven by Dupixent’s label expansions and upcoming oncology and respiratory launches."

Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is not included in our list of the 30 most popular stocks among hedge funds. According to our data, 66 hedge fund portfolios held positions in Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) at the end of the first quarter of 2025, down from 68 in the previous quarter. REGN beats earnings expectations as it reports an EPS of $12.89, above expectations of $8.43. While we acknowledge the potential of REGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) and BMO Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.