China is currently grappling with its worst COVID-19 outbreak since 2020, raising concerns that the pandemic might drag on even longer than expected. The country is witnessing the biggest surge in COVID cases since the original Wuhan outbreak, putting China’s “Zero Covid” policy to the test. With the new omicron variant, Omicron BA.2, pushing up cases worldwide, it appears possible that another wave in the U.S. could be around the corner.
Amid this, vaccine stocks are gaining traction as investors fear that the pandemic will take longer to resolve than expected, which could, in turn, drive demand for future vaccine orders. Furthermore, the vaccination drive is not likely to end anytime soon with the emergence of new COVID variants, nor will vaccine makers’ investments in research to develop better cures and booster doses to combat the crisis.
Given this backdrop, we think popular vaccine stocks Pfizer Inc. (PFE), Moderna, Inc. (MRNA), BioNTech SE (BNTX) could be ideal investments now.
Click here to checkout our Healthcare Sector Report for 2022
Pfizer Inc. (PFE)
New York City-based PFE is a research-based global company that discovers, develops, manufactures, markets, sells, and distributes biopharmaceutical products. The company’s global portfolio includes medicines and vaccines.
On March 24, 2022, PFE announced that it had been granted the Breakthrough Therapy Designation for its respiratory syncytial virus (RSV) vaccine candidate to prevent lower respiratory tract diseases caused by RSV in individuals who are 60 years old or above. This marks a significant milestone and should accelerate the development of its RSV vaccine candidate.
In the same month, PFE announced its agreement with UNICEF to supply up to four million treatment courses of its COVID-19 oral treatment, PAXLOVID™ (nirmatrelvir [PF-07321332] tablets and ritonavir tablets), to 95 low- and middle-income countries, pending authorization or approval. The company expects supply to be available to support orders in April 2022 and continue throughout 2022, adding significantly to the company’s revenue stream. PFE will offer the treatment courses to low- and lower-middle-income countries at its not-for-profit price, while upper-middle-income countries will pay the price defined in Pfizer’s tiered pricing approach.
For its fiscal fourth quarter, ended Dec.31, 2021, PFE’s revenues increased 104.9% year-over-year to $23.84 billion. Its adjusted net income grew 156.3% from its year-ago value to $6.24 billion, while its adjusted EPS increased 151.2% year-over-year to $1.08.
The $1.63 consensus EPS estimate for its fiscal first quarter, ending March 2022, represents a 75.7% improvement year-over-year. The $25.19 billion consensus revenue estimate for the same quarter represents a 72.7% increase from the same period last year. It has an impressive earnings surprise history; it topped the Street’s EPS estimates in each of the trailing four quarters.
Over the past year, the stock has gained 47.7% in price to close yesterday’s trading session at $52.59. It has gained 14.4% over the past month.
PFE’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which translates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
PFE has a B grade in Growth, Sentiment, Quality, and Value. It is ranked #8 of 175 stocks in the Medical - Pharmaceuticals industry.
Beyond what is stated above, we have also rated PFE for Momentum and Stability. Get all the PFE ratings here.
Moderna, Inc. (MRNA)
MRNA in Cambridge, Mass., is a biotechnology company that focuses on creating transformative therapeutics and vaccines based on messenger ribonucleic acid (mRNA). It develops products to treat infectious, rare, autoimmune diseases, immuno-oncology, and cardiovascular diseases.
On March 24, MRNA announced the finalization of a strategic partnership with the Australian Federal Government to establish a state-of-the-art, domestic mRNA vaccine manufacturing facility in Australia. This should help expand its operating capabilities and enhance its global reach.
Also, MRNA announced positive interim data from the Phase 2/3 study of the Moderna COVID-19 vaccine in children from six months to under six years of age. If it gets the U.S. Food and Drug Administration (FDA) approval, the company is expected to generate substantial returns because this is the only age group not yet eligible for vaccination, and governments might seek to vaccinate this group soon.
MRNA’s revenue increased 1,162.9% year-over-year to $7.21 billion in its fiscal fourth quarter, ended Dec. 31, 2021. Its income from operations grew 2,067.3% from the year-ago value to $5.41 billion, while its net income improved by 1,889.7% year-over-year to $4.87 billion. Its EPS increased 1,736.2% from its year-ago value to $11.29.
Analysts expect MRNA’s revenue for its fiscal first quarter, ending March 31, 2022, to come in at $5.44 billion, indicating a 180.9% increase year-over-year. The company EPS is expected to grow 155.4% year-over-year to $7.25 in the same period. Also, the company surpassed the consensus EPS estimates in three of the trailing four quarters.
MRNA stock has gained 36.5% in price over the past year and 15% in the past month to close the last trading session at $179.68.
It is no surprise that MRNA has an overall B rating, which equates to Buy in our POWR Ratings system.
MRNA has an A grade in Value and Quality and a B in Growth. Among the 420 stocks in the Biotech industry, MRNA is ranked #26.
In addition to the POWR Rating grades I have just highlighted, one can see the MRNA’s Momentum, Stability, and Sentiment ratings here.
BioNTech SE (BNTX)
BNTX is a Mainz, Germany-based clinical-stage biotechnology company that develops and commercializes patient-specific immunotherapies to treat cancer and other serious diseases.
This month, BNTX and PFE announced the submission of an application to the U.S. Food and Drug Administration (FDA) for Emergency Use Authorization (EUA) of an additional booster dose for adults 65 years of age and older who have received an initial booster of any of the authorized or approved COVID-19 vaccines. Because analysts anticipate another COVID surge, the booster candidate should garner significant returns for the company if approved.
On March 8, BNTX announced the expansion of its strategic collaboration with Regeneron Pharmaceuticals Inc. (REGN) for the clinical development of FixVac and Libtayo combination to treat advanced non-small cell lung cancer (NSCLC). The companies plan to jointly conduct clinical trials in different patient populations with advanced NSCLC and evaluate the combination. “We look forward to further building on our successful collaboration with Regeneron to accelerate the clinical development of BNT116 in our growing mRNA oncology pipeline,” said Özlem Türeci, M.D., Co-Founder and Chief Medical Officer at BNTX.
BNTX’s total revenue increased 8,918.2% from the prior-year quarter to €6.09 billion ($6.70 billion) in its fiscal third quarter, ended Sept. 30, 2021. Its operating income came in at €4.72 billion ($5.20 billion), reflecting an increase of 2,634.1% year-over-year, while its profit for the period stood at €3.21 billion ($3.53 billion), up 1,629.1% year-over-year. Its EPS increased 1,503.4% year-over-year to €12.35 in the same period.
BNTX’s revenue for the fiscal fourth-quarter, ending Dec.2021 is expected to come in at $4.26 billion, indicating 953.3% year-over-year growth. The company’s EPS is expected to increase 335.7% year-over-year to $8.02 for the same quarter. BNTX also beat the consensus EPS estimates in each of the trailing four quarters.
BNTX’s shares have gained 81.2% in price over the past year and 10.6% over the past month to close the last trading session at $170.41.
BNTX’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system.
The company has an A grade in Value and a B in Growth and Sentiment. The stock is ranked #24 in the Biotech industry.
To get BNTX’s ratings for Quality, Momentum, and Stability, click here.
Click here to checkout our Healthcare Sector Report for 2022
PFE shares were trading at $52.76 per share on Friday afternoon, up $0.17 (+0.32%). Year-to-date, PFE has declined -9.97%, versus a -4.57% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
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