There was a brief period of time where the world thought that COVID-19 was on its way out as vaccinations around the world were carried out at pace. However, with this new Delta variant and a fresh wave of lockdowns being implemented around the world, the road to economic recovery could again be hampered.
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Whilst this seems like quite a depressing state of affairs, savvy investors have now been taking the chance to bet big on vaccine stocks again. If you are thinking of following suit, here are MyWallSt’s 2 top vaccine stocks to watch right now.
Moderna: Bull vs Bear arguments
Moderna (NASDAQ: MRNA) is one of the hottest vaccine stocks out there at the moment. With the continuing pandemic and the popularity of the Moderna vaccine, it is a stock that is likely to be lucrative for a while to come.
Although there is an ongoing debate around the necessity of booster doses in the future, Moderna stands to gain a massive intake of revenue if boosters are ruled as essential. Indeed, future revenue for this company is likely to outstrip its current revenue from recent vaccine sales. In Q1 of this year, Moderna brought in $1.9 billion in revenue, of which $1.7 billion is attributed to the 102 million doses of the vaccine that were delivered. Looking forward, and the company has more than $19.2 billion in pre-purchase agreements. Furthermore, in 2022, Moderna plans to produce 3 billion doses of the vaccine, which is 3 times the maximum amount that has been scheduled over 2021.
If the booster doses are instead deemed to be unnecessary, then Moderna still has plenty of other pipeline projects that will guarantee new revenue growth over the next few years. This includes new Influenza vaccines as well as developments of Zika virus vaccines, HIV vaccines, and even personalized Cancer vaccines.
Moderna will be releasing its Q2 earnings in early August but many worry that the company will not be able to keep up with its stellar performance from the last quarter. Any drop in revenue will likely make investors in the company unhappy, perhaps causing some volatility. Additionally, for any investor, they will need to wait a while before they see any uptake in returns, particularly as the booster vaccines have yet to be approved, as well as any of the other more experimental drugs they have in their pipeline.
Johnson & Johnson: Bull vs Bear arguments
Johnson & Johnson (NYSE: JNJ) have been a well-known brand for years before the pandemic began. A company that produces everything from baby powder to suncream and shampoos. It owns many household names brands such as Neutrogena, Clean & Clear, even Band-Aid. It is fair to say that this company is already a global success.
The Johnson & Johnson vaccine has been a popular option for many with its 1-shot method. Although, again, the vaccine may require a booster at some point in the future, particularly when it comes to new variants that don’t respond as well to the vaccine. With the Delta variant spreading across the world, it has recently been found that the J&J vaccine is less effective than that of the Moderna or Pfizer vaccine. Other variants, however, seem to respond well.
In its recent earnings report, Q2 saw a strong sales growth of 27% year-over-year (YoY) with earnings per share of $2.35, up almost 73%. The COVID vaccine represented only a fraction of the sales, coming in at $164 million. Its total Pharmaceutical revenue segment came in at $12.6 billion, up 17.2% YoY. Revenue from all its segments combined was more than $23 billion for the quarter.
One thing that investors should be aware of with this company is the amount that it seems to be hot water with its products. In its most recent case, fuelling the national opioid epidemic. The pharmaceutical giant along with three other companies are being made to pay a combined $26 billion for their role in producing opioid products, which escalated the opioid problem in the States.
Allegations like this and more are to be expected from a large global company that produces medical and consumer products alike. Apart from this, Johnson & Johnson could be a great addition to your portfolio.
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