Corona Virus Vaccine Stocks: Moderna
It’s been well over a year since this post first appeared. Back in June 2020, about 100 vaccine contenders existed and the top 2 now are left as the market leaders.
My Vaccine stock pick was Pfizer based on how well managed the company is, its worldwide distribution, quality controls etc. Good brands aren’t just good marketing, they’re a certification of the company’s products. Pfizer’s Rna-based vaccine had been the standard until recently when Moderna’s vaccine stood out as the best protection against the new Delta Variant.
Moderna’s price is up 300% since last year and it’s one of the stars of the stock market. With Delta out of control and the world suffering outbreaks, demand for Moderna’s vaccine for the next 6 months will be solid. For instance, a recent deal with Takeda Pharmaceuticals of Japan is to import and distribute an additional 50 million doses of Moderna’s mRNA COVID-19 vaccine in Japan from as early as the beginning of 2022.
Just yesterday, Moderna’s CEO announced that a 3rd booster shot will likely be necessary this fall and winter. That suggests to many that Mrna vaccines will lose their potency and leave people vulnerable to new Covid variants. It’s not comforting to 6 billion people on the planet, many of whom will demand free vaccines forever.
I mentioned that Moderna is a smaller, more specialized Biotech company and that profits could be phenomenal if the company won the race. I should have heeded my own forecast! Now some believe Moderna is the Tesla of biotech stocks.
However, at the price of $386 and a P/E ratio of 259, it does sound like buying Moderna stock is a big gamble. The expert in the video below notes that Moderna has other vaccines in the works, and RNA vaccines could be applied to almost any disease. That might be what’s driving the long term forecast for Moderna and Pfizer too.
MRNA rose to $413.72 last week but today it dropped Moderna’s stock price lifted well. See if it’s on the recommended stocks to buy list.
As good as Moderna has been the last 12 months, some experts including Bank of America analyst Geoff Meacham believes there will be a big pullback — up to 75% in Moderna’s stock price. He makes some good points and its something Moderna will have to address — no boosters needed, health dangers, etc. but they might not carry much weight.
Corona Virus vaccine stocks are still valuable given booster shots will be necessary and because with worldwide infection surges, new Virus variants are bound to come out. Collecting data on which company is truthful, accurate and credible through this process might help you pick the best stock. See more on the 2022 stock predictions.
Moderna’s Stock Price Today
Perhaps the most important factor is the P/E ratio of 259. But it’s scaring away investors who may be thinking Moderna’s going to walk away with all the marbles in the vaccine race.
Best Vaccine Stocks to Buy?
To investors, Moderna is the best bet. It’s growth compared to Pfizer, J&J and AstraZeneca is phenomenal. The key is the quality of the vaccine (2nd dose is rough for those getting vaccinated, but worth it for protection) and the fact that Modern was a smaller more specialized company. Profits weren’t diluted to other departments as they may have with Pfizer.
Here’s Jim Cramer’s outlook on the best picks:
See which tech stocks you should buy, gainers and losers and whether investing in the Faangs are a wise idea at this point in the recovery. Or should you be investigating the Russell 2000? Will anti-trust lawsuits derail Google, Facebook and Amazon?
See today’s Google stock price, Facebook stock price and Amazon stock price. Also check out the Tesla stock price forecast. Elon Musk continues with a string of successes in his EV car company, battery production and with Spacex.
Volatility and Picking Long Term Winners
Day traders aren’t looking for long term winners. They’re reveling in the up and down movements of oil, gold and Dow Jones blue chips. And with retail investors having no insider information, they’re very vulnerable to volatility and perhaps shouldn’t be playing the day trading game.