5 Best Pharma Stocks To Buy Now

4. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 45

Moderna, Inc. (NASDAQ:MRNA) is a Cambridge, Massachusetts-based biotech company that has pioneered mRNA technology.

Moderna, Inc. (NASDAQ:MRNA) is further leveraging its technology to formulate personalized cancer vaccines (PCVs). The company received a boost earlier this month when pharma giant Merck opted to collaborate with Moderna, Inc. (NASDAQ:MRNA) in developing and commercializing Moderna’s PCV. The partnership was a build-up of a collaboration agreement that was signed previously. Analysts expect the Phase-II results of the PCV study in treating adjuvant melanoma to be positive.

Moderna, Inc. (NASDAQ:MRNA) boasts a return on invested capital (ROIC) of 36% while trading at 3.5X earnings. These fundamentals, coupled with very low levels of debt, make analysts believe that the company is among the best pharmaceutical stocks to invest in.

Here’s what Baron Funds said about Moderna, Inc. (NASDAQ:MRNA) in its Q3 2022 investor letter:

“Within biotechnology, underperformance of Moderna, Inc. (NASDAQ:MRNA) and lower exposure to this better performing sub-industry weighed the most on relative performance. Shares of Moderna, a leader in the emerging field of mRNA-based vaccines and therapeutics, declined due to increasing uncertainty around what a booster market could look like as COVID shifts away from pandemic status and becomes an increasingly commercial market rather than government funded.”