3 main stocks of coronavirus to watch in December

It’s a big month for coronavirus stocks – in particular, vaccine stocks. That’s because two of the leaders in the coronavirus vaccine race have applied for Emergency Use Clearances (EUA). And many more are moving into Phase 3 trials or awaiting key data from earlier trials.

In the coming weeks and months, regulators will likely authorize vaccines. Then vaccine makers will start to generate revenue and gain market share. The data reports can give us clues as to the next batch of vaccine candidates that will hit the market.

But before we look too far into the future, let’s take a look at what’s happening right in front of us. Here are the top coronavirus stocks to watch for in December.

1. Modern

I couldn’t write this song without including Modern (NASDAQ: ARNM). The company was the first to launch an experimental COVID-19 vaccine in a human trial. And, more importantly, Moderna recently applied for an EUA in the United States and conditional approval in Europe. The U.S. Food and Drug Administration (FDA) convened a meeting on Dec. 17 with its Advisory Committee on Vaccines and Related Biologics to discuss data from Moderna’s trials. A decision can come soon after.

So, now is clearly the time to watch Moderna. Is it time to buy? If you’re an aggressive investor and haven’t bought a stock yet, Moderna is a stock to consider. A clearance for its coronavirus vaccine – or full approval later – would increase shares further (even though they have already gained 677% this year). And the income generated from vaccine sales will drive growth. This vaccine would be the company’s first product to market – a milestone.

If you’re a cautious investor, however, you’ll want to look to the side – or just take a small position in the stock. This is because the next year or two of stock revenue and performance depends on the FDA’s upcoming decision.

2. Pfizer

Pfizer (NYSE: PFE) and partner BioNTech (NASDAQ: BNTX) lead the coronavirus vaccine race according to their schedule. Last month, the two companies became the first to submit their research product to the FDA for an EUA. They also called for emergency use in Europe.

This week again, the British regulatory agency granted them an emergency use authorization. The partners say they are ready to deliver doses “immediately”. Decisions in the United States and Europe may also come this month. The FDA has scheduled an advisory committee meeting to discuss the vaccine candidate on December 10; this means that a decision on the Pfizer-BioNTech vaccine may come sooner than a decision on Moderna.

Is it a good time to buy Pfizer shares? The answer is a clear “yes”. Equity gains may not be as dramatic as Moderna’s following a possible EUA. Why? Because Pfizer, with its large product portfolio, wouldn’t depend on a COVID-19 vaccine for its revenue. Still, he’s likely to receive a little boost. And in the long run, shareholders will benefit from the overall growth in income and dividend payments. In September, Pfizer announced a dividend for the 328th consecutive quarter.

3. Vaxart

Vaxart (NASDAQ: VXRT) recently completed enrollment in the Phase 1 trial of its investigational coronavirus vaccine. Of course, Vaxart is far behind rivals like Moderna and Pfizer. But something about Vaxart’s program sets him apart from the crowd.

The biotechnology company is developing a vaccine for oral administration. It takes the form of a tablet – just like many common medicines. This could be a winner for two reasons. First, most people would be happy to avoid a shot. Second, healthcare systems would save money on transport and storage because the tablet is stable at room temperature; traditional vaccines require refrigeration.

When Vaxart began its Phase 1 trial in October, it said it expected initial data in “the next few weeks,” so investors are hopeful the company can share some results in December. Now is the time to buy Vaxart shares? It depends on your investing style.

Vaxart is at high risk. The company has no product on the market: its most advanced candidate is an influenza vaccine in phase 2 studies. Revenue isn’t exactly around the corner. And we don’t yet know if the COVID-19 vaccine candidate will be safe and effective in humans. Reading the data to come will be crucial. For this reason, Vaxart is a stock to watch – but not to buy unless you are comfortable with the risk.

Each of these companies must take an important step in the coming weeks. But whatever your investing style, before investing in any of them, consider the last piece of the puzzle: the entire pipeline or portfolio of each company. Don’t buy shares of a pharmaceutical or biotechnology company for just one program. It is better to invest because you have confidence in its product portfolio or its pipeline as a whole. With this, you are more likely to be satisfied with the work of the company and your investment.