Pfizer Moderna Or Even Novavax ? What Coronavirus Vaccine Stocks To Watch In 2021.September 27, 2021
The Covid-19 pandemic has undeniably left lasting impacts in virtually every industry in the world, and with emerging new variants, it looks like it is not yet done with its round.
Despite these disruptions, we are seeing record growth in the stock market.
Knowing which stocks to invest in and when to open a position remains one of the most challenging parts for any investor, but choosing the right one can yield huge gains.
One sector that many investors are watching heavily are coronavirus vaccine stocks.
In the United States, President Joe Biden has ramped up the country’s push for Covid-19 vaccine requirements. The experts from the U.S. Department of Human Health and Services (HHS) have also expressed their plan to begin offering booster shots to the American public as early as fall of this year.
On the other side of the pond, the United Kingdom is also looking at implementing its own vaccine booster scheme by September, although there is no exact start date yet.
Everywhere else in the world, other countries are also in a race to vaccinate as many people as they possibly can, intensifying their respective Covid vaccination drive and planning for their eventual booster shot rollout.
As it stands, it cannot be denied that this increase in demand for coronavirus vaccine shots will also have a significant impact on the biggest names in vaccine stocks and vaccine manufacturing companies today, including Pfizer, Moderna, and Novavax.
Moderna (NASDAQ: MRNA)
Moderna, which is now available for trading at 1Market, was founded in 2010 and specialises in using mRNA technology to develop treatments and vaccines, including its own coronavirus vaccine line.
In December last year, it secured an emergency use authorization from the U.S. Food and Drug Administration (FDA), making it one of the earliest covid vaccine manufacturers to be given such approval.
By 2020, Moderna shares shot up nearly 700% as the company developed and tested its Covid-19 vaccine, and by 2021, the company recorded a staggering 333% growth. It recently got added to the S&5 500 index, which saw its shares surge to $484.47, which is a far cry from its pre-pandemic trading price of less than $20.
In its latest earnings report for the second quarter of this year, Moderna recorded a total revenue of $4.4 billion, a significant increase from the $66.4 million posted a year ago, and a net income of $2.8 billion – figures that matched analyst expectations.
Moderna’s primary source of revenue is through the sales of its Covid-19 vaccine, and currently, there are more than fifty (50) countries now that have approved it for emergency use.
Fueling Moderna’s impressive growth is the very high global demand for its Covid-19 vaccine, which boasts of a 94.1% effectivity rate. The company is also expecting to supply between 800 million to 1 billion doses in 2021, and ramping it up to between 2 billion to 3 billion doses in 2022.
Pfizer (NASDAQ: PFE)
Another stock to keep an eye out for is Pfizer stock. Pfizer and Moderna have consistently dominated the coronavirus vaccine market, with Pfizer receiving the first FDA Emergency Use Authorization in December of last year.
According to a report by Yale Medicine, the Pfizer vaccine was found to be more than 95% effective against severe disease or death from the Alpha variant that was first detected in the United Kingdom and the Beta variant that was first identified in South Africa in two studies based on real-world vaccinations.
For the Delta variant first seen in India, two studies reported by Public Health England that have not yet been peer-reviewed showed that full vaccination after two doses is 88% effective against symptomatic disease and 96% effective against hospitalization.
It comes as no surprise then that the demand for the Pfizer vaccine is also quite high, but while this demand has also fueled large growth for Pfizer, it still trails behind Moderna by a long shot.
One important technical analysis to look at when it comes to stocks is the market capitalization of the company, which is used by investors to help determine potential growth and allow them to compare one company to another.
If we look at Moderna, it has a market cap of around $151 billion. Meanwhile, Pfizer has a market cap of roughly $273 billion and has been an established drug manufacturer even before Moderna or the pandemic came into the picture.
Generally, companies with lower market caps experience rapid growth when compared to larger established companies. This rings true if we look at Moderna before their record growth.
Novavax (NASDAQ: NVAX)
At present, Novavax has still not secured an emergency use authorization approval in the U.S., but this is not stopping the coronavirus vaccine manufacturer from setting its sight on international markets, with contracts already lined up with at least 10 other countries.
Something also sets Novavax apart from both Pfizer and Moderna, which has investors excited – the Novavax vaccine has no storage temperature restrictions that are making international distribution a logistical challenge for the other vaccines.
Playing the waiting game may have worked in Novavax’s favour, as it has been dubbed by The Motley Fool’s Keith Speights as “by far the best-performing vaccine stock with a gain of more than 4,900% since the beginning of last year”.
Those are some pretty big words, and looking at Novavax’s market capitalization of roughly $17 billion, there is definitely a wide legroom for growth.
While some may argue that Novavax might be too late to the party, the supply deals it had inked so far would beg to differ – it had secured an agreement to supply 1.1 billion doses to the COVAX Facility for use in developing countries, its partner Takeda is in talks with the Japanese government about an order for 150 million doses, and it has inked a purchase agreement with the European Commission to supply 200 million doses.
The story of Novavax is an unlikely Covid-19 vaccine success story, and with things looking promising, Novavax has potential for huge growth which is why it is one of the stocks to look out for during this pandemic.
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