What does the future of the so-called “COVID-19 vaccine stocks” look like? Specifically, what are some experts saying about Pfizer, BioNTech, and Moderna, now that their three companies are leading the charge with vaccines that combat the coronavirus? Let’s take a look at what some experts are saying.
COVID-19 Vaccine Stock Forecasts: Pfizer
Perhaps unsurprisingly, Pfizer (NYSE: PFE) is leading the charge as a wise investment opportunity for those who are interested in investing in COVID-19 vaccine stocks.
According to The Motley Fool, Pfizer’s stock is the strongest of the three because this stock has paid dividends since 2010. Current stockholders will receive a payout in Q1 2021 that is 3% higher than the payout in previous years.
And the most notable thing of all is that this increased payout has nothing to do with the vaccine and everything to do with the strength of the stock itself.
What’s more, the company is set to receive an infusion of cash worth $12 billion, which gives it a bigger war chest to invest in more products.
The total revenue for Pfizer is projected to be well over $40 billion, and how much more they will get in revenue will depend on how fast they’ll be able to produce, and distribute, the vaccine.
Moderna Stock: A Better Investment?
When it comes to COVID-19 vaccine stocks, Pfizer isn’t the only game in town. Moderna (NYSE: MRNA) is quickly proving to be a hot contender.
While the stock is showing some promise after the FDA approved its vaccine — making it the first Moderna product to get FDA approval and thus make it to market — it’s also a volatile stock.
According to Investor’s Business Daily, Moderna stock has received a seven-fold increase since mid-December. And if you, as an investor, can buy now and sell quickly if it starts to tumble, it will prove to be a good investment for you.
“Savvy investors are advised to seek stocks with recent 20%-25% quarterly sales and earnings growth. The bigger that growth, the better.”
“It will be key to watch whether Moderna’s efforts to develop a coronavirus vaccine ultimately pay off on the bottom line,” they said. “Bullishly, MRNA stock has a strong Relative Strength Rating of 99. The RS Rating is a 1-99 score of a stock’s 12-month performance. This puts Moderna in the top 1% of all stocks — regardless of industry group — in terms of performance.”
BioNTech Stock: A New Entry Into The COVID-19 Vaccine Stocks Foray
For those looking to diversify their portfolio with some foreign companies’ stocks, BioNTech (NYSE: BNTX) may be an option. The German-based company just got an order for 100 million doses of their COVID-19 vaccine from China, which was co-developed with Pfizer.
But unlike the other stocks, which are forecasted to go up in price, BioNTech’s price is forecasted to falter and, ultimately, fall.
However, according to Yahoo Finance, BioNTech stock may be a good option for hedge fund managers, given that the stock appeared in 17 hedge fund portfolios prior to the release of the vaccine.
“Stocks had an average of 23.4 hedge funds with bullish positions and the average amount invested in these stocks was $840 million. That figure was $218 million in BNTX’s case,” they write.
“Our overall hedge fund sentiment score for BNTX is 52.9. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score.”
Savvy investors will be keeping an eye on this and all COVID-19 vaccine stocks in the future, to be sure.
Disclosure: Nothing in this article is meant to be construed as investment advice. Consult with your financial advisor before buying, or selling, any stocks.