2 Reddit Stocks Still Worth Investing In
As the interest in popular meme stocks has begun to wane, retail investors are looking now for new names discussed on Reddit. As such, highly discusse...
As the interest in popular meme stocks has begun to wane, retail investors are looking now for new names discussed on Reddit. As such, highly discussed stocks BioNTech (BNTX) and McAfee (NOK) may be poised for a turbocharged rally due to their sound fundamentals and solid growth prospects. So, we believe these two Reddit stocks are still worth owning. Read on.
Subreddit r/wallstreetbets (WSB) has transformed the world of investing and significantly reshaped the financial markets. WSB’s subscription growth ballooned this year, with more amateur traders joining the bandwagon in boosting the shares of heavily shorted stocks such as GameStop Corporation (GME), AMC Entertainment Holdings, Inc. (AMC), BlackBerry Limited (BB), to name a few.
Although a monstrous short squeeze has pushed GME’s stock up 3,773.3% over the past year, the frenzy appears to have cooled of late. GME’s stock is down 15.7% over the past month, while AMC’s shares have declined 4% over the past five days. While most popular Reddit stocks have been short-term winners, some new names continue to attract investors because of their promising long-term growth potential.
BioNTech SE (BNTX) and McAfee Corp. (NOK) are two Reddit stocks that have the potential to deliver high returns based on their solid business models and financial strength. These two stocks have been gaining momentum lately and we believe they are well-positioned to maintain their momentum.
BioNTech SE (BNTX)
Germany-based biotechnology company BNTX develops and commercializes immunotherapies for cancer and other infectious diseases. Its FixVac product candidates, such as BNT115 for treating ovarian cancer, are in Phase I trials, and GEN1046 and GEN1042 for treating multiple solid tumors are in Phase I/II clinical trials. In 2020, the company partnered with Pfizer Inc. (PFE) to develop and distribute RNA vaccine BNT162b2 for preventing COVID-19 infections, popularly known as the Pfizer-BioNTech COVID-19 vaccine.
This month, BNTX completed acquiring the tumor neoantigen T cell receptor (TCR) R&D platform and the Maryland-based manufacturing facility of Gilead’s Kite. These acquisitions should expand BNTX’s cell therapy and manufacturing capabilities in the United States and help strengthen its immunotherapy pipeline.
Last month, PFE and BNTX formed a partnership with Cape Town-based biopharmaceutical company Biovac to manufacture and distribute the Pfizer-BioNTech COVID-19 vaccine within Africa. This should further enhance BNTX’s supply chain network and accelerate the commercialization of its vaccine.
During the second quarter, ended June 30, 2021, BNTX reported €5.31 billion ($6.23 billion) in total revenue , compared to €41.7 million ($48.95 million) in the prior-year period, driven by rapid increases in the supply of COVID-19 vaccines worldwide. Its net profit stood at €2.79 billion ($3.27 billion) for this quarter, compared to a €88.3 million ($103.64 million) net loss in the second quarter of 2020. The company’s operating income came in at €4.2 billion ($4.93 billion), versus a €80.9 million ($94.96 million) operating loss in the prior-year quarter. Its EPS amounted to €10.77 ($12.64), while cash and cash equivalents came in at €914.1 million ($1.07 billion).
A $8.74 consensus EPS estimate for the next quarter, ending September 2021, represents a 916.8% improvement year-over-year. The $14.8 billion consensus revenue estimate for the current year represents a 2,409.1% increase from the same period last year. BNTX’s stock has gained 404.7% over the past year to close yesterday’s trading session at $447.23. Also, it has returned 31.5% over the past five days. Eighteen hedge funds in Insider Monkey’s database held stakes worth $172 million in BNTX in the first quarter of 2021, up from 17 hedge funds in the preceding quarter.
It’s no surprise that BNTX has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.
BNTX has a B grade for Sentiment and Quality. Of the 505 stocks in the Biotech industry, it is ranked #30.
Click here to view additional BNTX ratings for Momentum, Value, Growth, and Stability.
McAfee Corp. (MCFE)
Sant Clara, Calif.-based computer security software company MCFE offers integrated security technologies, privacy, and trust solutions to businesses, enterprises, and governments in the United States and worldwide. It operates through Consumer and Enterprise segments. MCFE also provides personal digital protection services under the Total Protection and LiveSafe brands.
Last month, MCFE completed its divestiture of certain assets and liabilities of its Enterprise business to Symphony Technology Group for $4.0 billion in cash. This is in line with the company’s commitment to focus on its Consumer business solely. Also, MCFE plans to use a portion of the proceeds from the transaction to repay approximately $1 billion of existing indebtedness.
MCFE’s net revenue rose 25% from the prior-year quarter to $442 million for the first quarter, ended March 27, 2021. The company’s gross profit increased 27.8% year-over-year to $326 million. Its operating income grew 69.4% year-over-year to $105 million, while its net income amounted to $94 million, up 944.4% from the prior-year quarter. Furthermore, its adjusted EBITDA totaled $199 million, representing a 25.2% increase year-over-year.
Analysts expect MCFE’s EPS for 2022 to increase 35% year-over-year. In addition, the company’s revenue will likely grow 11.3% next year. So far this year, the stock has gained 83.6%. Also, MCFE’s stock has returned 5.1% over the past five days. It closed yesterday’s trading session at $28.63. The company is placed fourth on Insider Monkey's list of 10 Reddit WallStreetBets stocks that are rising.
MCFE’s POWR Ratings reflect this promising outlook. It has an overall B rating, which equates to Buy in our POWR Ratings system. The stock has a B grade for Value and Quality. It is ranked #2 of 26 stocks in the Software – Security industry.
In addition to the grades I’ve highlighted, you can view MCFE ratings for Stability, Momentum, Growth, and Sentiment here.
BNTX shares rose $6.32 (+1.41%) in premarket trading Tuesday. Year-to-date, BNTX has gained 448.61%, versus a 19.03% rise in the benchmark S&P 500 index during the same period.
About the Author: Imon Ghosh
Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization.2 Reddit Stocks Still Worth Investing In appeared first on StockNews.com