Are These The Best Health Care Stocks To Buy This Week?
As fears of coronavirus continue to escalate due to yet another new variant, so are the potential of health care stocks in the stock market this week. Whether we like it or not, the viral threat continues to be a pest and this causes health care services to be in high demand. Investors are already reacting to the latest development in regards to the Omicron variant. Vaccine stocks such as BioNTech (NASDAQ: BNTX) were among the biggest winners to close the stock market last week. Besides that, coronavirus-related stocks such as iSpecimen (NASDAQ: ISPC) also soared to new highs as the viral disease is back in focus.
Well, even the World Health Organization (WHO) has warned that surges of infections caused by the new variant could have ‘severe consequences’. The new Omicron variant includes mutations seen in the Delta variant that increase transmissibility and promote immune escape. Naturally, these mutations pose a significant potential risk to accelerate the waning of natural and vaccine-induced immunity. So, it should not come as a surprise that the health care industry is heating up right now. Given these circumstances, here is a list of top health care stocks to watch in the stock market today.
Best Health Care Stocks To Buy [Or Sell] This Week
- Moderna Inc (NASDAQ: MRNA)
- Novavax, Inc (NASDAQ: NVAX)
- CVS Health Corp (NYSE: CVS)
- Pfizer Inc (NYSE: PFE)
Moderna
First up the list, we will be looking at Moderna. Essentially, the company focuses on creating medicines based on messenger ribonucleic acid (mRNA). Its mRNA medicines work by directing the body’s cells to produce intracellular membrane or secreted proteins that have the potential to address a range of diseases. MRNA stock has been trending heavily and with good reasons.
Over the weekend, the company’s stealth response to provide initiatives for the new Omicron variant has caught the attention of many investors. For those unfamiliar, Moderna is already studying two multi-valent booster candidates that were designed to anticipate mutations such as the Omicron variant. The fact that it anticipated the rise of a new variant and preparation work was already ongoing shows the level of commitment that it has to be at the forefront of the industry.
Furthermore, Moderna also states that it will rapidly advance an Omicron-specific booster candidate. The candidate is part of the company’s strategy to advance variant-specific candidates for a subset of variants of significant concern. Also, its track record of being able to advance new candidates to clinical testing in two to three months is nothing short of impressive. With that in mind, do you believe MRNA stock will have more room to run?
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Novavax
Following that, we have a clinical-stage vaccine company in Novavax. The company primarily focuses on the discovery and development of recombinant nanoparticle vaccines and adjuvants. Judging by how close the company is to gaining approval for its coronavirus vaccine, it would be wise to keep tabs on the company’s developments right now. Not to mention, NVAX stock has risen more than 40% just within the past month.
For starters, the company wasted no time in tackling the new Omicron variant. Last Friday, it announced that it has started working on a version of its vaccine to target the variant. It would have the shot ready for testing and manufacturing in the next few weeks. For those unaware, the company’s COVID-19 shot contains an actual version of the virus’ spike protein but it triggers the immune system without causing the disease.
Furthermore, Novavax also announced its submission to the Singapore Health Sciences Authority for the interim authorization of its COVID-19 vaccine last week. The filing is backed by its two pivotal Phase 3 clinical trials that showed promising results. As of now, its vaccine has already received its first emergency use approval in Indonesia and Philippines. Also, it claims that it is on track to file for U.S. approval by the end of the year. Given these considerations, would NVAX stock be a buy right now?
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CVS Health
CVS Health is a health services company. In detail, the company owns a retail pharmacy chain, pharmacy benefits manager, and a health insurance provider. It does this through CVS Pharmacy, CVS Caremark, and Aetna respectively. So, it helps people to navigate through the health care system by improving access, lowering costs, and being a preferred partner for every aspect of their health care journey. Some would argue that these services are needed more than ever now.
In fact, CVS recently announced several measures to help achieve its goals in the long run. Out of which, there are some leadership transitions within the company. The company appointed Mr. Prem Shah for the newly created role of chief pharmacy officer. He will oversee the entire omnichannel pharmacy strategy. Starting next year, Mr. Shah and Ms. Michelle Pelluso will become co-presidents of CVS Health’s retail business.
Not to mention, CVS plans to shut down about 900 stores over the next three years. The rationale behind this is to adapt to the changing consumer preferences by pivoting to new store formats that offer more health services. It would also create an enhanced version of its health hubs that offer treatment for common ailments as well as chronic care to ultimately add more customers. All these illustrate that the company has every intention to gain a competitive advantage provided by its presence in communities across the country. With that said, would you consider investing in CVS stock?
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Pfizer
Another company that is benefitting from the coronavirus panic right now would be Pfizer. Most people would know by now what an important role Pfizer plays in combating the pandemic thus far. It is among the three companies that offer FDA-approved coronavirus vaccines in the country. Similar to Novavax, PFE stock is also on a strong bullish run, rising to its all-time high of $55.70 as of 9.35 a.m. ET.
Earlier this month, the company and BioNTech announced that the U.S. FDA has expanded the emergency use authorization of a booster dose of its coronavirus vaccine to include individuals 18 years of age and older. Its booster dose is prescribed for those who completed the primary series for more than six months. The dosage of the booster shot will also remain the same as the primary series. Well, such developments are paramount for the company to remain at the forefront against the deadly virus.
Apart from that, Pfizer also recently announced that the European Commission has approved XELJANZ (tofacitinib) 5 mg twice daily for the treatment of adults with active ankylosing spondylitis. This will be the first and only oral Janus kinase inhibitor approved for five indications in the European Union. All things considered, would you consider adding PFE stock to your portfolio?
