Investors have options with stocks as we enter the second phase of COVID-era December.
What can we expect from 2021? A devastating phase of 2020 is coming to an end. The hard times of the COVID-19 era are about to end soon with vaccine candidates around the edge. With much happening on the development and regulatory fronts, investors have a great opportunity to look for investing in COVID stocks.
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Which stocks are the best to pick before entering 2021? Let’s have a look at the top 5 COVID stocks to buy in December 2020.
- Pfizer (PFE)
Pfizer, Inc. (PFE) COVID-19 vaccine success has raised the forecast for the biotech stock. Pfizer along with its partner BioNTech (BNTX) is the most anticipated stocks at the moment.
It was the first company to report the most efficient COVID-19 vaccine, Pfizer-BioNTech candidate BNT162b2. The progress of Pfizer’s vaccine continues as it first got its authorization in the U.K. and Canada. Moreover, the U.S. FDA authorization for the vaccine is near approval.
The journey has already begun for Pfizer after its first customer, a 90-year-old woman, in theU.K. received the COVID vaccine. Pfizer collectively with BioNTech is going to make megabucks from the sale of BNT162b2.
Bernstein analyst Ronny Gal expects the Pfizer-BioNTech vaccine to make a sale over a whopping $25 billion in the next five years. Initially, the company will supply its vaccine to those nations who are most affected by the pandemic. The demand is high and supply is limited; leveraging to high-price of vaccine. So, Gal’s estimate is on a lower end as the sale could possibly exceed $25 billion.
Pfizer recently completed a long-anticipated merger of its Upjohn unit with Mylan. This deal has stabilized the company for stronger growth moving forward.
Pfizer stock is way cheaper than most S&P 500 stock, as its shares are trading around the $41 price mark; 14 times less than expected earnings. The dividend rate is close to 3.6%, which is also quite attractive.
All these specs lead Pfizer, Inc. (PFE) to be a suitable and one of the best risk-averse stocks from the pharmaceutical line.
- Moderna (MRNA)
Moderna (MRNA) is a big fish after Pfizer. It was the second company that announced an effective COVID-19 in line with Pfizer-BioNTech’sBNT162b2.
Moderna’sCOVID-19 vaccine mRNA-1273 is racing with BNT162b2 to reach the market. After reporting top efficacy results from the Phase 3 trials, the company is nearing to win the emergency use authorization for its vaccine candidate in December.
According to Reuters, Moderna has secured an additional 100 million dose order from the U.S. government, anticipated to be delivered in Q2 2021 if authorized. Previously, the company has already signed deal for more than 300 million doses of its COVID-19 vaccine.
This is expected to bring high cash inflow for the company. Goldman Sachs analysts expectmRNAto make more than $13.2 billion in 2021. While, Morgan Stanley projects $10 billion to $15 billion from coronavirus vaccine sales in the next two years.
Moderna can be a major investment after Pfizer.
- Novavax (NVAX)
The drugmaker, Novavax (NVAX) has skyrocketed up to 3,000% since the start of 2020. The pandemic has had a positive impact on the drugmakers. Is Novavax a good option for investors after a massive surge or should they let this stock go?
More aggressive and short-term oriented investors might not be that interested in Pfizer. In that premise, one of the biggest winners in the COVID-19 vaccines is Novavax—a future prospect.
The reason for Novavax’s rise is its potential COVID-19 vaccine candidate,NVX-CoV2373, which is under development. With tremendous early-stage vaccine results, Wall Street analysts referred to Novavax’s vaccine as best in class.
At the moment, the company is evaluating NVX-CoV2373 in a late-stage study in the U.K. The interim results are expected early in the next year.
Investors have a good option to invest in Novavax as the positive COVID-19 vaccine news will push the share price further upwards. Another promising aspect for the company is its potential pipeline candidate, flu vaccine NanoFlu, whichcould be another bullish factor.
- Arcturus Therapeutics (ARCT)
Arcturus Therapeutics (ARCT) is a stock for impatient investors. It has been one of the most promising mRNA-based stock. ARCT is a future stock to see in the COVID-19 vaccine rally.
The key aspect is Arcturus’ COVID-19 vaccine ARCT-021 that also uses the mRNA approach which has already been proved in Pfizer’s BNT162b2 and Moderna’s mRNA-1273. The key difference between Pfizer-Moderna’s vaccine and Arcturus’ vaccine is that it requires only one dose. This makesit more effective and cost-saving. Now, that’s a big Pro for the company and more developing nations will be titled towards ARCT-021if it completes all its phases effectively.
However, it’s too early to go big on ARCT-021. Still, the potential is there and investors should keep an eye on its experimental outcomes.
Arcturus intends to initiate late-stage vaccine trials in Singapore. And, Singapore is the second country to sign supply agreements with the company for its coronavirus vaccine.
- Vaxart (VXRT)
Vaxart (VXRT) is a low-price stock that has potential to go big in future. The COVID-19 vaccine candidate, VXA-CoV2-1, just completed enrollment for Phase 1 trials. Vaxart is way behind other vaccine giant stocks, but it’s one for the post COVID-19 era.
VXRT shares have rocketed over 2,000% so far this year. This shows the potential of the stock to go big in future. However, it may face a bear trend in the near future, but with COVID-19 vaccine it has a brighter long-term prospect.
The company could report its initial results from the Phase 1 in the coming days. Till then, investors can wait and follow what’s up coming from VXA-CoV2-1.
The advantage for Vaxart’s vaccine is that it is a single-dose tablet compared to most of the two dose injections. VXA-CoV2-1 will certainly attract low economy-based companies.
If the trials come out with safe and effective results, Vaxart could have a bright future ahead. A stock with just over $810 million market value holds the potential to bring in big fortune for investors.
Among all these five-potential stocks; Pfizer, Moderna and Novavax makes more sense to invest for now. But, don’t overlook Arcturus Therapeutics and Vaxart, they’re one for the future.