Jim Cramer on Regeneron Pharmaceuticals, Inc. (REGN): 'Numbers Came Up A Little Short'

We recently compiled a list of the 10 Jim Cramer Stocks with Huge Upside Potential. In this article, we are going to take a look at where Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stands against the other Jim Cramer stocks with huge upside potential.

During the episode of Mad Money aired on Wednesday, Jim Cramer broke down what he considers some of the most effective practices for buying stocks.

“I want to pull back the curtain and show you how a professional looks for stocks to buy and knows what to sell. There's no magic. There's no hidden talent. Just a bunch of disciplines, disciplines that can help you try to make mad money if you master them.”

READ ALSO: 21 Stocks on Jim Cramer’s Radar and Jim Cramer’s Thoughts on These 13 Stocks.

Cramer stressed the importance of conducting thorough research before committing to any stock purchase. He emphasized that investors must truly believe in the stock they are buying, even if that belief is rooted in skepticism, so long as they are convinced the price will rise and that the stock deserves that rise. He warned, however, that conviction is not enough on its own when a stock has pulled back from its high. If the decline is unrelated to the company's actual business, which he described as an “extraneous” reason, it may present an opportunity.

“Be certain you're dealing with a momentarily damaged stock and not a troubled company that's going down, down, down. How can you tell the difference between a damaged company and a damaged stock? The fundamentals haven't changed, the stock probably hasn't fallen from grace. It's pulled back for mechanical reasons, profit taking, or some panic in the market in general.”

Cramer pointed out that modern markets are heavily influenced by highly levered hedge funds, which treat stocks like commodities. He said that such behavior leads to irrational sell-offs that can drag high-quality stocks down for reasons unrelated to their financial health. Still, he cautioned that once a stock’s fundamentals begin to shift, if the qualities that originally made it appealing no longer exist, then it is no longer suitable for inclusion in a portfolio.

Our Methodology

For this article, we compiled a list of 43 stocks that Cramer was bullish on during episodes of Mad Money aired between April 24 and May 2. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of May 8. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Average Price Target Upside: 51.41%

Number of Hedge Fund Holders: 68

Last week, recounting stocks with the most gains over the past 20 years, Cramer discussed Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) as he said:

“Rearrange Repligen’s ticker just a bit and you’ll get the ninth best stock of the Mad Money era, Regeneron Pharma, that’s up more than 9,400%. Now this one’s special to me because Regeneron’s co-founder and CEO, Dr. Len Schleifer, he was one of the first guests who ever came on the show back in April 12th, 2005. The stock was trading at less than five bucks a share. Now it’s at $568, and that’s after 6.87% beating today.

Regeneron is arguably the most innovative biopharma company I’ve seen in the last two decades. But the stock’s come in significantly over the past eight months or so, falling more than 50% from its highs. Wall Street’s trying to game the impact of Regeneron first big patent cliff as they lost protection for their EYLEA, that’s a blockbuster treatment for wet age-related macular degeneration. In fact, when Regeneron reported this morning, numbers came up a little short because of an EYLEA miss, which is why the stock got clobbered today.”

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) creates and sells medications for various diseases. The company works on discovering new treatments for multiple medical issues. On April 30, Truist revised its price target for REGN, from $975 to $940 while maintaining a Buy rating on the stock. The firm explained that the adjustment shows a more conservative view on Eylea sales in the near term.

Despite the tempered expectations around Eylea, Truist pointed out that Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is still delivering growth on both revenue and earnings fronts, especially driven by the performance of Dupixent (Dupi) and Libtayo. According to the analyst, while the market's current attention may be centered on the slowing momentum of Eylea, the company’s broader financial outlook remains positive thanks to contributions from its other key products.

Overall REGN ranks 1st on our list of Jim Cramer stocks with huge upside potential. While we acknowledge the potential of REGN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

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