We recently compiled a list of the 10 S&P 500 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Moderna, Inc. (NASDAQ:MRNA) stands against the other S&P 500 stocks.
Jim Cramer, host of Mad Money, recently discussed the current state of the market and also discussed both the leading and lagging stocks within the S&P 500. He posed an intriguing question: What if Trump’s tariffs are more negotiable than expected? Instead of a hard-line approach, Cramer suggested they could end up being more like a “steak knife” than a “meat axe,” meaning less harmful to trade and international relations.
READ ALSO Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently and 8 Stocks on Jim Cramer’s Radar
While a more reasonable tariff policy might not be ideal for global trade, it would be a positive development for stocks, particularly if it results in lower prices for American consumers or if multinational companies move their manufacturing to more favorable countries. Cramer emphasized that, for stockholders looking for growth, hopes should be placed on negotiable tariffs.
“If you own stocks and you want them higher, you have to hope for negotiable tariffs that could cause countries to lower prices to us or make multinational companies move their manufacturing base here to a more friendly country.”
Cramer also discussed the S&P 500’s performance this year, noting that, while it is clear which stocks have thrived in the Nasdaq, the winners and losers in the broader S&P 500 have been more difficult to pinpoint.
Additionally, Cramer mentioned that several of the stocks in his Charitable Trust, which are reliant on a rebound in China, are ones he’s not excited about at the moment, especially considering the disappointing Chinese economic data. He mentioned that his dismay for such stocks will only last until “they annualize the crummy Chinese numbers and then they’ll probably bounce back.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A scientist surrounded by vials and beakers in a modern laboratory, proudly displaying a vaccine.
Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 34
Cramer noted that Moderna, Inc. (NASDAQ:MRNA) stock sank in 2024 and discussed the company’s bad numbers.
“Second, Moderna, with a stock down 58%, remains a casualty of the post-Covid hangover. One of the last now that Zoom Video and Docusign have taken off. The numbers here are staggering, staggeringly bad. The market capitalization in 2021 got as high as $195 billion, now at a $16 billion. Its declining revenues from $19.3 billion in 2022 to an expected $3.3 billion last year is eye-popping and nauseating and we keep waiting for the promised personal vaccines.
I like CEO Stéphane Bancel, nice man, but I’m sad to say that the stock would roar if he were to step down as manager, even if he definitely needs to stay on to help develop vaccines. He’s a great guy, but shareholders deserve better performance.”
Moderna, Inc. (NASDAQ:MRNA) is a biotech firm focused on creating messenger RNA-based therapeutics and vaccines for various diseases. In 2024, it announced plans to reduce its expenses by about $1.1 billion by 2027 due to declining demand for its COVID-19 products. To manage costs, the company will pause or discontinue certain projects in its pipeline.
The company also adjusted its R&D spending target to $3.6 billion–$3.8 billion in 2027, down from the previously projected $4.8 billion. CEO Stéphane Bancel emphasized that this shift would involve scaling back some studies and putting a hold on research related to latent viruses that can remain dormant in the body.
Bancel addressed a sharp stock decline in his annual shareholder letter, citing weak COVID-19 vaccine sales and a contraction in the respiratory syncytial virus (RSV) vaccine market. Following a limited RSV vaccination recommendation from the CDC, Moderna, Inc. (NASDAQ:MRNA) will exclude products in their launch year from its financial reporting.
Bancel acknowledged a decline in the company’s market share of the COVID vaccine, despite overall market volume staying the same. The company plans to pursue a more selective approach, targeting 10 product approvals over the next three years while delaying other programs until it is better equipped to launch them globally.
Overall MRNA ranks 7th on our list of the S&P 500 stocks on Jim Cramer’s radar. While we acknowledge the potential of MRNA 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 timeframe. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.