What Are The Best COVID Vaccine Stocks For Conservative And Aggressive Investors?
T.Here are some stocks you can buy to take advantage of the COVID-19 vaccine market. Which ones are ideal for you, however, depend in large part on your investment style. In this Motley Fool Live Video recorded on February 24, 2021Keith Speights and Brian Orelli of Fool.com discuss which COVID-19 vaccine stocks are the best recommendations for aggressive and conservative investors.
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Keith Speights: Basically, we have six senior or potential executives in the U.S. COVID-19 vaccine space. There are Pfizer (NYSE: PFE)together with his partner, of course BioNTech (NASDAQ: BNTX), Ticker there is BNTX, there is Moderna (NASDAQ: MRNA), Ticker there is MRNA, Johnson & Johnson (NYSE: JNJ), JNJ is the ticker there, Novavax (NASDAQ: NVAX), NVAX is the ticker and AstraZeneca (NASDAQ: AZN), AZN is the ticker there.
When you compare these six or potential executives, which one do you think is the best choice for conservative investors and which is the best choice for aggressive investors? Because I think you will likely have two different answers there?
Brian Orelli: Yes. I think if you go for this one we have to look at the whole company, not just the coronavirus probability of success or the coronavirus impact on return on sales.
Like Johnson & Johnson: They don’t plan on making profits from the coronavirus so we’re putting them at the very bottom, but I think they are a great company, and if you’re looking for a dividend or a risk spread, and if you’re looking for one Looking for great diversification in healthcare, you can basically buy a healthcare ETF or a Johnson & Johnson. [laughs] and you will likely get roughly the same return.
Johnson & Johnson is likely to grow about the same as a large-cap healthcare ETF. Just because they are so well diversified, the chances that they will have a major problem that will result in a significant change in rating are quite small because they are so large that a product is not that big of a deal.
I like Pfizer because they are evolving, becoming more drug oriented, so outsourcing their generics and outsourcing their consumer health department, which would sell like over-the-counter products. But while it’s still part of the company right now, they eventually combined it with GlaxoSmithKline‘s Consumer Healthcare Division, and that’s probably going to go public at some point, and then they’re going to get some money from it, and they won’t have that on the books anymore. With this money, they can then expand their pipeline.
I don’t follow AstraZeneca that much, but I think it’s a pretty slow growing pharma, so that would probably be my third pick among the big pharma.
As for the smallest of the three – Moderna, BioNTech, and Novavax – I own Novavax. I like this company, mostly because of the rating, not because I think Moderna and BioNTech’s mRNA technology isn’t great because I definitely think it’s great. I just think a lot of future growth is already priced into their ratings. That’s why I own Novavax and not Moderna and BioNTech.
I wish I had bought [laughs] Moderna and BioNTech when I wasn’t as convinced that their technology worked the way I do now. [laughs] But their ratings were much lower. I wish I had bought then, but I wasn’t sure the probability of success. But now we’ve seen it work so I’m much more confident but the reviews seem a little outrageous in my opinion.
Speights: Yes. I’d rather agree with you, Brian. I think conservative investors won’t go wrong with buying Johnson & Johnson stock. I am a Pfizer shareholder. I think Pfizer is ready for better growth now. I don’t think the market really saw Pfizer’s growth potential. It’s not embedded in the stock’s valuation just yet, but I think we’ll see this improve over the next year or so.
If you’re an aggressive investor, I think Novavax is still a great stock to buy and still has plenty of room to run. They haven’t won the EEA yet but I think they will probably do so in the near future … they will probably win the EEA relatively soon in Europe and the UK and not too far into the future in the US so I think that they have done a lot of potential. They also have another vaccine. They have a flu vaccine, NanoFlu, which looks very promising.
Orelli: If we talk about coronavirus, which has been going on for a long time, they have the potential to combine these two which would definitely be good business as you only need to get one shot against two.
Speights: Yes. Your market cap is still, I didn’t look this morning, still only around $ 15, 16 billion. That’s still well below some of these other companies, even the relatively small biotech companies in the COVID-19 vaccine space. I think Novavax can definitely still go a long way, even after making huge gains in the last year or so.
The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.