Coronavirus stocks have been a trending topic to watch in the stock market this year. With the resurgence of coronavirus cases globally, it’s comforting to know Gilead Sciences’ (GILD Stock Report) remdesivir has gotten approval from the Food and Drug Administration (FDA) on Thursday as a treatment for the coronavirus. Right after the announcement, GILD stock was up more than 5% in after-hours trading.
“Since the beginning of the COVID-19 pandemic, Gilead has worked relentlessly to help find solutions to this global health crisis,”…“It is incredible to be in the position today, less than one year since the earliest case reports of the disease now known as COVID-19, of having an FDA-approved treatment in the U.S. that is available for all appropriate patients in need.”– Daniel O’Day, Gilead CEO
Just to be clear, there is a lot of hype about this sector. While it may be excellent news for GILD stock investors, a study coordinated by the World Health Organization (WHO) had indicated that the drug had “little or no effect” on reducing the mortality rate. Still, it has shown to be modestly effective in reducing the recovery time for some hospitalized patients. So, you be the judge.
We have previously discussed how coronavirus stocks have been having breakouts overnight, This is common among biotech stocks. One of the classic examples is Novavax Inc. (NVAX Stock Report), where the stock skyrocketed nearly 2,000% year-to-date. Given such an impressive feat, you can’t blame investors for trying to look for the best coronavirus stocks to buy in the stock market today. This investment thesis centered around potential vaccines, treatments, and testing kits related to COVID-19.
Many experts believe that the prospects for bigger returns in the future are not diminished yet. In fact, many are bullish that the clinical trials over the coming months could drive top coronavirus stocks higher. After all, without vaccines and the right treatments to put an end to the coronavirus pandemic, the global economy will continue to be subdued. With that in mind, do you have this list of coronavirus stocks that could potentially bring you outsized gains?
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Abbott Laboratories (ABT Stock Report) has been the poster child for coronavirus testing. While Abbott does develop plenty of therapeutic drugs, its tests are what make it worth watching right now. Abbott has products in every segment of the testing market, including rapid tests, multiplexable diagnostic tests, and antibody tests. The company’s business continues to thrive largely due to the COVID-19 pandemic.
The diagnostic tests company reported its third-quarter revenue of $8.9 billion. This is a 9.6% increase from the revenue of $8.1 billion generated in the same period last year. More importantly, the net income reported was $1.2 billion. In short, the company crushed most, if not all analysts estimates on Wall Street this quarter.
CEO Robert Ford said that Abbott’s “new product pipeline continues to be highly productive, and we’re well-positioned to finish the year with a lot of momentum.” Abbott’s COVID-19 diagnostics tests have certainly set the standards. The BinaxNOW COVID-19 Antigen Card diagnostics test is a low cost, fast, and accurate. It is already making big waves in the COVID-19 testing arena. This could drive Abbott’s revenue even higher than its current impressive figures. With all these positives in mind, is ABT stock a worthwhile coronavirus stock to consider?
Pfizer (PFE Stock Report) is jointly developing a coronavirus vaccine with BioNTech (BNTX Stock Report). With its massive pipeline of drugs, there’s no reason not to include PFE stock on the watchlist especially when the drugmaker is due to make an announcement before November. Could this vaccine be the next in line to receive FDA approval?
The partnership revealed that their leading coronavirus vaccine candidate, BNT162b2, is on track to be the first to find out if its COVID-19 vaccine works soon. And the anticipation of the news is certainly keeping PFE stock investors on the edges of their seats. The partnership appears to be the first among the contenders in the vaccine race.
If the vaccine wins the approval of regulators, Pfizer and BioNTech have said that they could supply up to 100 million doses by the end of this year. That’s enough to vaccinate 50 million people. In the following year, the duo could supply another 1.3 billion doses of the vaccine. Should all go well as planned, PFE stock would receive another boost in its stock price. On the flip side, in the event where the vaccine fails to produce strong data, it probably wouldn’t result in the free-falling of PFE stock. With this in mind, would you buy PFE stock today?
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The mere mention of the COVID-19 vaccine has created considerable interest in Sorrento Therapeutics (SRNE Stock Report). The company’s coronavirus vaccine candidate, Abivertinib will be entering phase 2 testing in Brazil. There’s also a great chance where the company could announce favorable trial results for abivertinib within the next several weeks. From the way I see it, it’s highly likely given the fact that it has already been tested on about 600 cancer patients. If the drug wasn’t found to be safe in those patients, Sorrento probably wouldn’t have licensed it. Should it proceed as planned, you could potentially see a rebound in SRNE stock.
“By targeting some of the geographies currently most impacted by COVID-19, we are able to implement a synergistic program to answer questions about safety and efficacy of our drug candidates in helping patients, while potentially accelerating enrollment timelines, reducing overall cost and opening up collaboration opportunities with local companies,” Sorrento quoted CEO Henry Ji as saying.
With the recent pullback in SRNE stock, is it worth buying right now? Sorrento has certainly made its presence felt with its work on the COVID-19 vaccine. But of course, it is not quite in the leading positions. Does that mean that the stock has gotten ahead of itself? Your guess is as good as mine. The good thing is, besides its COVID-19 programs, it also has a number of oncology and pain programs in the pipeline. As such, Sorrento has the potential to shine in more ways than you might have initially thought. The question is, would you be willing to stomach the potential volatility?