Novavax And Moderna Are Big Covid Vaccine Stock Bets This Year
Investors are betting the urgent need to end the Covid-19 pandemic, which has become the biggest healthcare and economic crisis of recent times, will translate into big profits for companies that successfully develop a safe, effective, and affordable vaccine. Our indicative theme of Coronavirus Vaccine stocks – which includes a diverse set of U.S. listed pharma and biotech companies that are working on novel Coronavirus vaccines – is up by over 700% year-to-date, on an equally weighted basis, compared to the S&P 500 which has gained just about 9% over the same period. The theme remains up by about 135% since the end of 2018, versus about 40% for the S&P. Novavax (NASDAQ: NVAX) has been the biggest driver of the theme’s returns, rising by over 2600% year-to-date. On the other side, Pfizer stock is down about 2% this year. Below is a bit more on the companies in our theme of Coronavirus Vaccine stocks and relative performance.
Novavax, a late-stage biotechnology company engaged in vaccine development has seen its stock surge by over 2,600% year to date, driven by its work on Covid-19 vaccines. The stock has returned about 200% since the end of 2018. The company’s vaccine candidate is currently in phase 2 trials.
Moderna, a clinical-stage biotech that is carrying out phase 3 trials of a Covid-19 vaccine, has seen its stock rally 245% this year. The stock has returned about 325% since 2018. (related: How much could a Covid-19 vaccine add to Moderna’s EPS?)
Johnson & Johnson, the diversified pharma behemoth is working on a Covid-19 candidate, which began phase 1 trials in July. The stock is up by about 7% year-to-date and is up by about 24% since 2018. (related: Is Johnson & Johnson a better bet than Merck?)
Pfizer: the pharma major which is working with Germany’s BioNTech on a Covid-19 vaccine is down by -2% year-to-date. The stock is also down by about -8% since 2018. (related: Pfizer looks less expensive compared to Roche) Phase 3 testing for the vaccine began in the U.S. in July.
While vaccine stocks could offer further upside, there is considerable risk as well. What if instead, you are looking for a more balanced portfolio? Here’s a top-quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams