Market Sell-Off: 2 Stocks Down 17% and 36% This Year to Buy and Hold

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).

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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.

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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.