2 High-Flying Vaccine Stocks with More Upside Potential
With the advent of the COVID-19 omicron variant, vaccine developers are again the recipients of heightened investor attention. The success of Pfizer’s (PFE) and BioNTech’s (BNTX) COVID-19 vaccines has helped...
With the advent of the COVID-19 omicron variant, vaccine developers are again the recipients of heightened investor attention. The success of Pfizer’s (PFE) and BioNTech’s (BNTX) COVID-19 vaccines has helped these stocks soar in price over the past few months, and they could continue gaining. So, we think it could be wise to add them to one’s portfolio now. Read on.
Discovered only a few weeks ago, the COVID-19 omicron variant is now the dominant strain in the United States, accounting for roughly 73% of cases. The Biden administration has been taking steps to contain its spread. Last month, the White House's COVID-19 response coordinator, Jeff Zients, said, “We're working with Pfizer, Moderna, and (Johnson & Johnson) to develop contingency plans for modifications to vaccines or boosters if they're needed.”
With the rapid spread of the new variant across several parts of the world, the demand for COVID-19 vaccines and booster shots is expected to increase significantly. According to a BCC Research report, the global market for vaccine technologies is expected to grow at a 7.6% CAGR over the next five years to $55.10 billion.
Therefore, we think it could be wise to bet on quality COVID-19 vaccine stocks Pfizer Inc. (PFE) and BioNTech SE (BNTX). They have gained significantly in price, especially with the emergence of the omicron variant. And these stocks are expected to continue rallying in the coming months.
Pfizer Inc. (PFE)
Leading biopharmaceutical company PFE, New York City offers medicines and vaccines in various therapeutic areas, including cardiovascular, metabolic, pain, biologics, small molecules, and immunotherapies.
On December 8, PFE and BNTX announced that a three-shot course of their COVID-19 vaccine in a laboratory test can neutralize the omicron variant, an early signal that booster shots could be crucial protection against infection from the newly identified variant.
PFE’s revenues increased 134.4% year-over-year to $24.09 billion for its fiscal third quarter ended September 30, 2021. While its adjusted income increased 132.7% year-over-year to $7.69 billion, its adjusted EPS came in at $1.34, up 127.1% year-over-year.
Analysts expect PFE’s revenue to increase 13.2% year-over-year to $845.99 billion for its fiscal 2022. In addition, its EPS is expected to grow 26.9% year-over-year to $49.05 in the next year. Over the past nine months, the stock has gained 71.7% in price to close yesterday’s trading session at $61.02. It gained 15.8% over the past week.
PFE’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
PFE has an A grade for Growth and a B grade for Value and Quality. Within the Medical - Pharmaceuticals industry, PFE is ranked #8 of 193 stocks. Click here to see the additional POWR Ratings for Momentum, Stability, and Sentiment for PFE.
BioNTech SE (BNTX)
Headquartered in Mainz, Germany, BNTX is a biotechnology company that develops and commercializes immunotherapies for cancer and infectious diseases. It creates a broad product pipeline using different scientific approaches and technology platforms, including individualized mRNA-based product candidates, targeted cancer antibodies, and small molecules.
France’s Haute Autorite de Sante (HAS) health regulator approved the PFE-BNTX COVID-19 vaccine for all children aged between 5 and 11 years on December 20. Since the European Medicines Agency (EMA) approved the use of PFE-BNTX’s lower-dose vaccine on the 5-11 age group last month, several countries across the European Union have started vaccinating children in that age group.
BNTX’s total revenues increased 8,918.2% year-over-year to €6.09 billion ($6.87 billion) for its fiscal third quarter, ended September 30, 2021. The company’s profit came in at €3.21 billion ($3.63 billion), compared to a €210 million ($237.17 million) loss in the prior-year quarter. Also, its EPS came in at €12.35, compared to a €0.88 loss per share in the year-ago period.
For its fiscal 2021, analysts expect BNTX’s revenue to be $19.8 billion, representing a 3,255.6% year-over-year rise. The company’s EPS is expected to increase 59,185.7% year-over-year to $41.5 in its fiscal 2021. Over the past nine months, the stock has gained 155.8% in price to close yesterday’s trading session at $275.23. It has gained 8.9% over the past week.
BNTX’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to a Buy in our POWR Rating system. Also, the stock has a B grade for Growth, Value, and Quality. Click here to see the additional POWR Ratings for BNTX (Momentum, Stability, and Sentiment). Again, BNTX is ranked #21 of 469 stocks in the Biotech industry.
PFE shares were trading at $58.34 per share on Tuesday morning, down $2.68 (-4.39%). Year-to-date, PFE has gained 64.69%, versus a 23.65% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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