1-Star Stocks Poised to Plunge: Regeneron?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotech company Regeneron Pharmaceuticals (NAS: REGN) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Regeneron's business and see what CAPS investors are saying about the stock right now.

Regeneronfacts

Headquarters (Founded)Tarrytown, N.Y. (1988)
Market Cap$9.9 billion
IndustryBiotechnology
Trailing-12-Month Revenue$445.8 million
ManagementCo-Founder/CEO Leonard Schleifer
CFO Murray Goldberg
Return on Equity (Average, Past 3 Years)(27.7%)
Cash/Debt$810.6 million / $435.5 million
CompetitorsAmgen
Novartis
Roche Holding

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 27% of the 186 members who have rated Regeneron believe the stock will underperform the S&P 500 going forward.

Just a few of days ago, fellow Fool Sean Williams (TMFUltraLong) agreed with yours truly and questioned Regeneron's lofty valuation:

[F]antasyland valuation. There's no way that Eylea's forecast of $250 million-$300 million in sales translates into a $10.5 billion market cap. Avastin should give Eylea enough competition to bring Regeneron back to Earth. Never get too excited about new drugs otherwise you often get burned.

What do you think about Regeneron, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Novartis. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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