We recently published an article titled Why These 15 Large-Cap Stocks Are Plunging So Far In 2025. In this article, we are going to take a look at where Viatris Inc. (NASDAQ:VTRS) stands against the other large-cap stocks.

The big and large-cap stocks have spearheaded the rally in the past two years, but Wall Street’s expectations have gotten ahead of many of their fundamentals. The Nasdaq briefly entered correction territory as the stock market cooled over the past week due to tariff fears and a perceived slowdown in the growth of AI, which then spilled into the data center industry.

Wall Street is now reassessing the growth premium they are paying for many of these large-cap stocks. A lot of them have tumbled in the past week and have done so in a much more severe way than the broader market.

That said, large companies have staying power, and many of them could now be undervalued.

Methodology

For this article, I screened the worst-performing large-cap stocks ($10 billion to $100 billion) year-to-date.

I will also mention the number of hedge fund investors in these stocks. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A healthcare worker in a lab coat, holding a microscope and reflecting on the diagnosis of a patient.

Viatris Inc. (NASDAQ:VTRS)

Number of Hedge Fund Holders In Q4 2024: 48

Viatris Inc. (NASDAQ:VTRS) is a healthcare company. It provides access to generic and branded medicines, biosimilars, and active pharmaceutical ingredients.

The stock is down significantly so far in 2025. In December 2024, the FDA issued a warning letter and import alert for Viatris' Indore manufacturing facility in India due to regulatory compliance issues.

This impacted 11 actively distributed products, including lenalidomide and everolimus, with exceptions granted for only four products due to shortage concerns.

The company estimates this will reduce 2025 revenues by $500 million and adjusted EBITDA by $385 million.

On top of that, Viatris Inc. (NASDAQ:VTRS) reported fourth-quarter revenues of $3.52 billion, down 8% year-over-year. It missed consensus estimates of $3.61 billion. Adjusted EPS was $0.54 and also missed expectations of $0.57.

2025 guidance also came in lower than expected. Viatris Inc. (NASDAQ:VTRS) projected 2025 revenues between $13.5 billion and $14 billion, below consensus expectations of $14.3 billion. Adjusted EPS guidance of $2.12-$2.26 also fell short of the consensus estimate of $2.60.

The consensus price target of $11 implies 16.03% upside.

Viatris Inc. (NASDAQ:VTRS) stock is down 23.86% year-to-date.

Overall VRT ranks 12th on our list of the large-cap stocks that are plunging so far in 2025. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.