If you’ve been scouring for uber-healthy companies to bulk up your portfolio, look no further. This week, our curated VIP list of Pro Picks - only available to InvestingPro subscribers - has five stocks with incredible cash flow health, making them primed to beat the S&P 500. Regeneron (NASDAQ:REGN), a cash-rich biotech giant, ranks elite among them.
All of this week’s Pro Picks sport cream-of-the-crop cash metrics such as a solid cash flow margin and debt-to-capital ratio. That means they’re in an excellent position not only to foot their bills, but to provide serious returns to fundamental investors.
Backed with all that cash, it’s clear why InvestingPro awarded these companies with a “Great Performance” health score of 2.75 or more. And for the last 7 years, stocks with these kinds of health scores have actually outperformed the market.
REGN is flush with cash, giving the company a lot of cushion to seed future growth. The company also just announced positive late-phase results on a new indication for its existing asthma drug, Dupixent, which research firm Jefferies believes could be a $4B opportunity for REGN.
Shares took a hit earlier this month after the company trimmed its gross margin guidance, knocking the stock down to a tempting price: At these levels, analysts expect some 20% upside, while InvestingPro fair value anticipates a rise of about 27%.
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If you're already an InvestingPro subscriber, this week's full Pro Picks list is available here.
Data as of May 18, 2023
