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Bernstein analyst Ronny Gal predicts that coronavirus vaccines will generate $ 40 billion in sales in 2021. What’s particularly astonishing about this number is that the market did not exist at all before. December.
Large markets create great opportunities for investors. But what are the best ways to seize this particular opportunity? Here are three fantastic coronavirus stocks to buy right now.
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1. Johnson & Johnson
Johnson & johnson (NYSE: JNJ) Expected to Announce Advanced Study Results of Its COVID-19 Vaccine, JNJ-78436735, very soon. It is no exaggeration to say that this vaccine could be a game-changer if it proves to be safe and very effective. Unlike all the other major coronavirus vaccines, JNJ-78436735 only requires a single dose.
What about J&J’s commitment to sell its COVID-19 vaccine at cost during the pandemic? Of course, that will mean that the healthcare giant’s revenue won’t be increased in the short term, even if JNJ-78436735 is successful. However, the pandemic will not last forever. A single-dose vaccine could generate billions of dollars in sales for J&J over the next few years.
More importantly, JNJ-78436735 is not the primary reason to consider buying Johnson & Johnson shares. An even more compelling argument for investing in J&J is that it is the biggest player in healthcare, one of the biggest sectors with strong long-term growth prospects. The company also provides significant diversification into the healthcare industry as a leader in consumer healthcare, medical devices and pharmaceuticals.
Another very good reason to buy Johnson & Johnson shares is its dividend. The company is a Dividend King – an elite group of S&P 500 members who have increased their dividends for at least 50 consecutive years. For income investors looking for stability, there is simply no better stock of coronavirus vaccines than J&J.
2. Pfizer
When the history books are written about the pandemic, Pfizer (NYSE: PFE) will almost certainly be mentioned. Large drugmaker quickly partnered with German biotechnology BioNTech (NASDAQ: BNTX) in early 2020. The two companies’ COVID-19 vaccine became the first to obtain emergency use authorization in the United States.
This vaccine, Comirnaty (formerly known as BNT162b2), could bring in $ 14 billion and possibly more this year. Pfizer will split sales 50-50 with BioNTech. The partners are working on the development of a freeze-dried version that does not require ultra-cold storage, which could be ready later in 2021. This version could set the stage for Pfizer to achieve huge recurring revenue with Comirnaty in the long term. . Unlike Johnson & Johnson, Pfizer will benefit from its COVID-19 vaccine early on.
Even without taking into account the positive impact of Comirnaty, Pfizer expects to achieve adjusted annual profit growth of around 10% over the next several years, with annual revenue growth of around 6%. These are risk-adjusted projections, so growth rates are not dependent on all applicants in Pfizer’s pipeline.
Don’t overlook the Pfizer dividend. The company is not a royalty dividend like J&J, but its dividend pays over 4%.
3. Novavax
Risk averse investors will likely appreciate Johnson & Johnson and Pfizer. But what about more aggressive investors? Novavax (NASDAQ: NVAX) could be just the ticket.
Like J&J, Novavax expects to publish late-stage results for its COVID-19 vaccine candidate soon. There is one catch though: this late stage study is being conducted in the UK. Novavax did not start its advanced stage study in the United States until the end of December, so it will be several months before the results are available.
Still, Novavax could be a huge winner in the coronavirus vaccine market. Bernstein’s Ronny Gal believes biotechnology will bring in $ 3.8 billion in sales this year. If he’s right, Novavax’s market capitalization will skyrocket well above its current level of around $ 8 billion.
Novavax also has another promising candidate in the investigational influenza vaccine NanoFlu. He’s already been through last minute tests. The company only needs to perform a batch consistency test to file for approval in the United States. With two potential blockbusters waiting behind the scenes, I think Novavax’s risk-reward profile makes it arguably the best coronavirus stock for 2021.
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