With cases of novel coronavirus showing no signs of stopping, investors are starting to pull out a list of the coronavirus stocks to watch. Unfortunately, the disease has claimed over 1.7 million lives around the world, and the race to create a safe and effective vaccine has been the utmost priority. As a result, top biotech stocks have managed to reap the benefits of this rush with their respective vaccine candidates. We have seen the rise of coronavirus vaccine stocks like BioNTech (BNTX Stock Report) and Moderna (MRNA Stock Report) who have experienced explosive growth on the stock market year-to-date.
Currently, BioNTech and Pfizer’s (PFE Stock Report) vaccine candidate is being administered to medical frontliners around the world. Because of this, investors may be wondering if the race on the vaccine has been called. Perhaps, it may be too soon to say that. The argument that can be made is this. If you think about it, the current vaccine requires two doses to be administered to be effective. This would add up to a cool 15.6 billion doses to vaccinate the global population. That coupled with the fact that no biotech company has a production capacity that great, paints a good picture for investors. Especially those looking to make the most of the coronavirus tailwinds at the moment. On top of that, the industry continues to innovate with improved vaccines that can be taken orally and more efficient testing kits.
However, as readers of StockMarket.com would know, the biotech sector exhibits quite a bit of volatility. Positive news like strong clinical data and drug approvals can send the best biotech stocks to buy skyrocketing. Conversely, negative news could crush biotech stocks. To help with navigating the industry, here is a list of top coronavirus stocks making waves now.
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Firstly, we have Sorrento (SRNE Stock Report). It is a clinical-stage biopharmaceutical company that develops new treatments using antibodies. The company’s developmental pipeline includes treatments for coronavirus, cancer, and pain. Notably, SRNE stocks ended yesterday’s trading session up by 18%. Nevertheless, it has taken a breather this morning, falling 7% during Thursday’s trading session. This is understandable as it has been very busy this week.
For one thing, the company announced its official emergency use authorization (EUA) submission to the U.S. FDA for its rapid test kit known as COVI-STIX. Sorrento’s test kit is reported to be able to provide results within 15 minutes. With faster testing, medical workers will be able to inform patients quicker and help lessen the spread of the virus. Second, CNBC reports that Sorrento is also developing antibodies injection and nose drops to help battle the coronavirus. The end goal of the products is to enable rapid protection from the coronavirus via the production of antibodies within days of administration. Should all this go as planned, Sorrento would be selling the test and the protection needed. These are great developments for the company and its investors as well. This would explain the recent hype around the company.
To add to that, the company had a stellar performance in its recent quarter. In its third-quarter fiscal, the company saw a huge year-over-year leap of 103% in total revenue. Sorrento also ended the quarter with $75 million in cash on hand which marks a 116% rise over the same period. With various coronavirus-focused products and growing resources, investors could feel that SRNE stock has room to grow in 2021. What about you?
Following that, we have vaccine race contender, Novavax (NVAX Stock Report). Many investors are likely familiar with the biotech company by now. With NVAX stocks skyrocketing over 2700% year-to-date this is clear. Considering its current gains, it would be normal to question if the company has any more growth potential. With this in mind, I say we take a look at what it has been up to this week.
December 21 was a particularly intriguing day for Novavax. For starters, Reuters reported that the Philippines will be receiving 30 million doses of the company’s vaccine. The coronavirus vaccine race has changed from one of development to supply. And this is a great move for the company. On top of that, Novavax has also brought Rick Crowley in as its new Chief Operations Officer. CEO Stanley Erck commented, “Rick’s wealth of biopharmaceutical experience and record of on-time FDA approvals comes at the perfect time to help ensure that Novavax delivers on our global manufacturing mission and supply commitments.” In the long run, he could prove to be a valuable asset to Novavax’s operations post-pandemic. Investors appear to be aware of this as well.
In terms of financials, the company also saw massive gains over its recent quarter. It ended the quarter with $334 million in cash on hand. Recall that the company is receiving up to $1.6 billion in funding under the U.S. Government’s Operation Warp Speed. With all these positive developments, it is unsurprising that investors are watching NVAX stock. Will you be doing the same?
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Finally, we will be looking at PacBio (PACB Stock Report). In brief, it is a California-based biotech company that develops and manufactures systems for gene sequencing. PACB stocks soared by over 60% just this month alone. As a result, it is currently trading near its all-time high. I say this warrants a closer look at what it found.
On December 16, the company announced the initial findings of its coronavirus genome sequencing project with clinical lab company LabCorp (LH Stock Report). Currently, they are focused on developing a production-scale procedure for sequencing the genome of thousands of coronaviruses. PacBio Chief Scientific Officer Jonas Korlach said, “COVID-19 will continue to be an area of significant clinical research in the months and years to come as we work toward gaining a more detailed understanding of this complex disease and the human host’s immune response.” As vaccines are rolled out and immune pressure increases, the data could benefit surveillance efforts for any new viral mutations. In short, PacBio’s research is looking to protect us in the long run. Investors could see this as long-term growth potential in PACB stocks and buy while it is still at a reasonable price.
In its third-quarter fiscal report in October, the company saw a 108% year-over-year rise in cash on hand. This added up to a total of $69 million. On top of that, the company brought in $19 million in total revenue. Despite being a lesser-known player in the industry, investors appear to have PacBio in its sight. Judging from its current trajectory, do you think PACB stock will flourish in 2021?