With Regeneron Pharmaceuticals Stock Surging, Have You Considered The Downside?

Regeneron Pharmaceuticals (REGN) stock is up 34.7% in 21 trading days. The rally reflects renewed optimism around its strong Q3 earnings and expanded FDA approvals for key therapies, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?

Before judging its downturn reslience, let’s look at where Regeneron Pharmaceuticals stands today.

• Size: Regeneron Pharmaceuticals is a $82 Bil company with $14 Bil in revenue currently trading at $787.32.
• Fundamentals: Last 12 month revenue growth of 2.9% and operating margin of 26.7%.
• Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.21
• Valuation: Regeneron Pharmaceuticals stock is currently trading at P/E multiple of 17.8 and P/EBIT multiple of 15.7
• Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned -3.5% within a year. See REGN Dip Buy Analysis.

These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell REGN Stock

That brings us to the key consideration for investors chasing this rally: how resilient is REGN stock if markets turn south? This is where our downturn resilience framework comes in. Suppose REGN stock falls 20-30% to $551 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.

2022 Inflation Shock

• REGN stock fell 25.8% from a high of $738.84 on 8 April 2022 to $548.35 on 14 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 4 October 2022
• Since then, the stock increased to a high of $1,201.76 on 27 August 2024 , and currently trades at $787.32

 
2020 Covid Pandemic

• REGN stock fell 27.3% from a high of $658.21 on 20 July 2020 to $478.30 on 30 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 20 August 2021

 
2018 Correction

• REGN stock fell 48.1% from a high of $526.53 on 22 June 2017 to $273.46 on 27 September 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 April 2020

 
2008 Global Financial Crisis

• REGN stock fell 57.9% from a high of $28.60 on 2 May 2007 to $12.05 on 11 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 3 February 2010

 
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