4 Top Stocks To Win Big From The Coronavirus Pandemic (Revised)
Zacks Investment Research | Mar 04, 2020 03:28AM ET
Worries over how the coronavirus outbreak will impact corporate profit margins and global economy roiled the U.S. stock market in February. And it’s almost certain that the outbreak will continue to dominate the headlines in March as well. As such, investors should certainly brace for more gyrations in the days ahead.
But even though most of the major indexes have registered double-digit losses in the past few weeks, certain biotech stocks have defied the downward trend and ended in the green during such turbulent times. And it’s mostly because these companies are trying to develop a treatment for coronavirus, which helped garner impressive gains over the last couple of weeks. And should these clinical tests prove successful, such stocks will surely scale north in the long run. At the same time, professional money managers are looking to buy stocks that act as a hedge against the virus threat, or those that simply benefit from the particular event.
Notably, such stocks include Moderna, Inc. (NASDAQ:MRNA) , Inovio Pharmaceuticals, Inc. (NASDAQ:INO) and Co-Diagnostics, Inc. (NASDAQ:CODX) . Clinical stage biotechnology company, Moderna has manufactured a new vaccine for coronavirus treatment. Unlike DNA-based treatments, Moderna focuses on developing mRNA treatments, which should help in treating the virus better. DNA-based treatments generally require the nucleus of the cell but mRNA can be found across the cell which makes it easily accessible.
Moderna, by the way, has been pretty impressive. After getting to know the virus’ genetic composition, it just took the company less than two months to develop the vaccine. Moderna currently flaunts a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has moved up 6.2% over the past 60 days. What’s more, the company’s expected earnings growth rate for the current and next quarter is 7.5% and 9.8%, respectively. You can see Zacks Investment Research
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