In many ways, the pandemic is becoming a faded memory. With that, a major pandemic star -- biotech Moderna (NASDAQ: MRNA) -- also seems to be disappearing from the world's attention. The company's stock is down a headache-inducing 36% year to date, compared to the S&P 500 index's mere 9% slide.

This doesn't mean Moderna is inactive; in fact, it's quite the opposite. Let's see if that, combined with its considerable price weakness, makes it something of a stealth buy today.

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A powerhouse during the pandemic

Moderna shot to prominence near the end of 2021, when its Spikevax coronavirus vaccine received emergency use authorization (EUA) from the U.S. Food and Drug Administration (FDA).

Spikevax was not the first COVID jab to earn such approval -- that honor belonged to Pfizer and BioNTech's Comirnaty. Still, seemingly overnight it made Moderna a near-household name to a population enduring lockdowns and stay-ins as the disease spread across the world.

The two first-mover vaccines both sold briskly. Moderna, a young company compared to Pfizer, became a hot ticket for investors as its revenue ballooned. The top line soared from $803 million in 2020 to more than $18.4 billion the following year. Headline net income for the latter was $12.2 billion.

But what have you done for me lately?

There was a sleeper problem lurking under all this: Moderna didn't have any other products to at least partly offset the inevitable slide of Spikevax sales as the pandemic eased.

It wasn't because the company was misguided or lazy. Even the most efficient biotechs and pharmaceutical companies can take years to develop their wares in the multistep process leading up to a potential regulatory nod.

Moderna has been diligently plugging away since its founding on exploring uses for the messenger RNA (mRNA) based technology that drives Spikevax. It's harnessing this to develop vaccines for an admirably wide range of disorders, including mononucleosis, Lyme disease, and several types of cancer.

Many of these are in mid- or even late-stage clinical trials, so we shouldn't be surprised if new regulatory approvals are earned before long.

Again, though, the development process is lengthy, and so far, the only other Moderna vaccine to earn FDA approval has been mRESVIA, a respiratory syncytial virus (RSV) jab that was given the FDA green light in mid-2024. Disappointingly, mRESVIA's rollout was greeted with weaker-than-expected sales.

The waiting game

Considering all that, an investment in Moderna involves hope and patience that those investigational vaccines will come to market successfully and win some degree of popularity.

It also requires optimism to cope with the reality that Robert F. Kennedy Jr., the government's Health and Human Services secretary, has expressed skepticism of vaccines (to put it mildly).

Yes, this is a company that managed to develop and win approval for a powerful vaccine to help beat back a global healthcare scourge. Its technology is also extremely clever and cutting edge, with potential in so many directions.

But the clock is ticking fast. Moderna earned quite the windfall from COVID-era Spikevax sales; that's melting away, however. Management is estimating that it will end 2025 with $6 billion in cash, some distance below the $19 billion-plus it held in the thick of the pandemic.

Dilutive secondary share issues or burdensome debt arrangements could very well be in store for the company before long, then.

I give Moderna high marks for innovation and resourcefulness with mRNA, plus its determination to develop any of a number uses for it. But there are too many question marks about its future just now. That will change notably if it can get a potentially strong-selling vaccine approved. Until then, I would avoid its stock.

Should you invest $1,000 in Moderna right now?

Before you buy stock in Moderna, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends BioNTech Se and Moderna. The Motley Fool has a disclosure policy.

What should investors do during a stock-market correction? One great strategy is to go shopping. A bull market will eventually follow the challenging and volatile times we face, and, based on history, this bull run is likely to be longer than the current ordeal. Furthermore, companies often end up trading for steep discounts during corrections, since many investors are unable to resist the urge to panic-sell -- one more reason why fortunes are made during downturns.

With that in mind, let's consider two stocks down 17% and 36%, respectively, this year that are worth investing in right now: Regeneron Pharmaceuticals (NASDAQ: REGN) and Moderna (NASDAQ: MRNA).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

1. Moderna

Moderna made a name for itself by quickly developing and marketing an effective COVID-19 vaccine when the world needed it most. Although it made a small fortune in this area, the biotech has been struggling since the pandemic started to recede. Moderna's revenue declined substantially while it returned to being unprofitable. The current volatile environment isn't helping the stock, either.

MRNA Revenue (Annual) data by YCharts.

But there is some good news: Moderna has made significant clinical progress in the past couple of years. It earned approval for a vaccine for the respiratory syncytial virus (RSV), mRESVIA, while it aced phase 3 studies for a combination coronavirus/influenza vaccine that could earn the green light sometime this year. This combo vaccine would be the first to inoculate patients against both COVID and flu, showing Moderna's innovative abilities once again.

The company consistently targets areas with high unmet needs, including some where no approved vaccines exist. Its late-stage pipeline features a potential vaccine for cytomegalovirus (CMV) -- there are currently none -- and a personalized cancer vaccine that could help significantly decrease the risk of recurrence or death in eligible patients. Moderna's early-stage pipeline boasts other ambitious candidates. The field of mRNA-based vaccines, in which the biotech specializes, is still relatively new -- but it looks incredibly promising.

Traditional vaccines are made from weakened viruses or bacteria, a process that takes time. While mRNA ones need the genetic code of the target infectious agent, they're faster and cheaper to develop. Moderna is proving to be an innovative player in this growing field, and it has a deep pipeline that should lead to more significant clinical milestones down the line.

So, despite the company's struggles over the past three years, it could have a bright future. That's why it's worth it to purchase Moderna's shares, as they're down by 36% this year.

2. Regeneron Pharmaceuticals

Regeneron Pharmaceuticals, a leading biotech company, faces some uncertainty. While its financial results looked strong last year, Eylea, a medicine for wet age-related macular degeneration co-marketed with Bayer, is facing biosimilar competition. Even though Regeneron earned approval for a new formulation of Eylea in late 2023, the old version continues to generate significant sales for the drugmaker.

That, combined with marketwide volatility, is what's causing Regeneron's shares to perform poorly; the stock is down 17% year to date. However, there are some key factors to consider.

First, Regeneron's most important medicine is Dupixent, an eczema treatment it co-markets with Sanofi. Dupixent was already among the world's best-selling medicines before it earned a label expansion in treating chronic obstructive pulmonary disease (COPD) late last year, which could add several billion dollars in sales of the therapy.

Second, the newer version of Eylea should continue stealing patients away from the older version, thanks to its more convenient dosing schedule. That should help smooth out losses from biosimilar competition.

Third, Regeneron has an exciting pipeline. It's growing its presence in oncology, has made moves in the weight loss market, and is developing a highly promising gene therapy for hearing loss that's posted excellent results in early-stage studies.

Finally, Regeneron recently initiated a dividend in addition to its already attractive share-buyback program; the company clearly intends to reward its shareholders. That's another good reason to invest in the stock.

Should you invest $1,000 in Moderna right now?

Before you buy stock in Moderna, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Moderna wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Regeneron Pharmaceuticals. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.