Are You Investing In Coronavirus Stocks Right Now?
It is safe to say that coronavirus stocks are a major topic of conversation among investors right now. By trying to avoid the virus at all costs by staying home, we have more time at our disposal to search for the best stocks to buy during coronavirus. But this doesn’t come easy.
As there is a lot of hype about this sector, investors are advised to do tons of research before jumping into another “pump and dump” scheme. I don’t blame day traders for this because we have witnessed the upside potential of this hype. Some of which has been delivering handsome rewards to their investors, as high as 1000% gains in a short-term period.
While much of the quick gains are interpreted as hype-fueled momentum, investors are now narrowing their choices according to company’s fundamentals. Here are 3 coronavirus stocks that could help you preserve and build your wealth during these challenging times.
Coronavirus Stocks To Buy [Or Avoid] #1: Gilead Sciences
Gilead (GILD Stock Report) has been the most high-profile name in the race for a COVID-19 treatment, given the company’s outstanding track record in treating HIV and Hepatitis C. Unless you have been living under a rock, you would have known that the company has beend hitting headlines lately with their potential COVID-19 treatment, remdesivir. Gilead has been all over the news recently again after encouraging clinical trial data. This makes GILD Stock one of the best stocks to buy in the market. The drug has met the primary endpoint in a recent Phase 3 clinical trial. On Friday, the FDA granted Emergency Use Authorization for the use of remdesivir in COVID-19 patients.
From needing to depend on ventilators to have remdesivir as a potential treatment for now is very assuring. Despite conflicting data, results from the largest trial shows the antiviral speeds up recovery and the treatment could be made to be the standard of care in the US.
“Although a 31% improvement doesn’t seem like a knockout 100%, it is a very important proof of concept….. What it has proven is that a drug can block this virus.” Anthony Fauci, director of US National Institute of Allergy and Infectious Disease (NIAID)
It is reported that tens of thousands of remdesivir treatment courses are in production. The treatment will be ready to roll out to critical patients within days. Even though remdesivir has been a big sentiment boost for GILD Stock, no one knows what a sustainable revenue stream from this drug will look like. While this is the best drug we have now, analysts remain cautious of the company’s ability to monetize the drug.
Coronavirus Stocks To Buy [Or Avoid] #2: Vir Biotechnology
VIR Biotechnology (VIR Stock Report) shares have soared 150% YTD. This comes as the company joined other biotech and pharmaceutical companies in finding treatments for COVID-19. The gains for VIR and other drugmakers working on COVID-19 treatments were significant as the coronavirus outbreak expanded. The clinical-stage biotech company initially focused on Hepatitis B treatment. But it is now exploring multiple approaches for its coronavirus treatments.
Partnership with GlaxoSmithKline Signals Confidence in VIR Biotechnology
Big pharma company GlaxoSmithKline (GSK Stock Report) has announced that it signed a binding agreement with VIR to enter into a collaboration. This is to research and develop solutions for COVID-19. Gilead will leverage VIR’s monoclonal antibody platform for development. The fact that GSK is willing to invest $250 million is another positive indication for the company, highlighting the strength of the company’s research.
Also, VIR has expanded a previous partnership with Alnylam Pharmaceuticals for the development and commercialization of RNA interference therapeutics. This also serves as a potential coronavirus treatment. The multiple approaches for COVID-19 treatments and its involvement in various disease areas should improve the odds for VIR Biotech.
However, the financial position for all clinical-stage biotech companies, including VIR, are not always rosy. These companies face R&D expenses but do not have actual products on the market to provide a revenue stream. With the recent steep gains in share price on coronavirus news, will there still be room for upside once the race to find COVID-19 treatment concludes?
Coronavirus Stocks To Buy [Or Avoid] #3: Capricor Therapeutics
As companies race to develop treatments and vaccines for COVID-19. Investors have been leaving no stone unturned in looking for the next breakthrough among coronavirus stocks in the market. Shares of Capricor (CAPR Stock Report) were on the top of investors’ minds.
The company gained all the attention after reporting six critical COVID-19 patients with 100% survival rate. These patients who were all suffering from acute respiratory distress syndrome and five of whom were on ventilator support, were treated with its experimental drug, CAP-1002. This makes CAPR Stock one of the best stocks to buy in the market.
What Are Analysts Saying About CAPR Stock & CAP-1002 Therapy?
Even after the evident optimism, some analysts aren’t convinced just yet. Despite 100% survival rate among the six critical patients, we have to bear in mind that the sample size of patients treated using CAP-1002 is small. Thus, one cannot conclusively say that the treatment for COVID-19 has been found. A good sample size for clinical trials is typically in the hundreds, or even in the thousands.
While there will be some time before we receive any further updates from the company, it’s evident that Capricor has benefited from the recent hype in coronavirus. The question is, will that last? So, keep Capricor in mind especially if you are in the market to acquire biotech shares. In any case, CAPR remains a hot coronavirus stock to watch in the coming weeks.