Do not let the continuous release of the vaccine lead you to think that the stocks of coronavirus are exceeded. Until the number of global cases drops to manageable levels, we will still need new vaccines, many diagnostic tests and all the therapeutic drugs we can get to treat patients with COVID-19 and prevent people from contracting the disease.
The footprint? Competition for market share is intensifying. So it is a little harder to choose a winning coronavirus stock now than in 2020. Being the first to have an approved product for sale clearly does not mean that it will capture the entire market. Investors must focus on companies that will make products tangibly better than the competition.
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1. Johnson & Johnson
While Johnson & Johnson (NYSE: JNJ) is still working on its coronavirus candidate vaccine, it has a great advantage that vaccines for Pfizer (NYSE: PFE) and Modern (NASDAQ: MRNA) Don’t: It takes just one dose to generate immunity. This means that it does not have to manufacture as much to meet demand. It has the added benefit of making the logistics of vaccine administration much easier, as people will only need to report to a clinic once, and clinics will need to purchase fewer syringes and associated products than competing vaccines. But the candidate will need to go through his final phase of clinical testing and obtain regulatory approval before investors can count on the reward.
The J&J vaccine will have another advantage over the competition: better storage and transport characteristics. While the Pfizer vaccine requires transport and storage in deep-frozen freezers, J&J can be stored in standard medical refrigerator temperatures for up to 90 days. In that refrigerator, the Pfizer vaccine can only stay five days before it spoils. This means that the J&J candidate is easier to deploy in smaller clinics, which is likely to be an important factor in the purchase decision. The caveat here is that everything I said assumes that the candidate is just as effective as the others on the market. If you are not so good at preventing serious illnesses, you will have a major disadvantage.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) he is not working on a vaccine, but his diagnostic tests make him a profitable stock of coronavirus. As a result of its strong leadership in testing throughout the pandemic, Abbott’s diagnostic sales revenue in the United States increased 61.4% in the third quarter compared to the previous year. In total, the company has eight different tests approved for sale, covering every conceivable diagnostic niche for coronavirus. Its latest rapid test product is designed for home use and offers inexpensive results to consumers, without using any expensive and complicated laboratory equipment.
Given the high demand for testing, Abbott is expected to continue to thrive, especially if it continues to innovate in consumer testing solutions. In particular, the company’s NAVICA smartphone app for tracking test results is likely to be a major value driver for consumers looking for test products in a growing field of competitors. Expect Abbott to continue developing and launching more sophisticated coronavirus diagnostic tests and emphasizing digital solutions like NAVICA that add advantages such as traceability and third-party verification of diagnostic results.
3. Co-diagnoses
Unlike Abbott or J&J, Co-Diagnosis (NASDAQ: CODX) it is a small cap stock that is growing like wildfire. This year, the company sold more than 10 million of its coronavirus molecular diagnostic tests, earning $ 21.8 million in the third quarter alone. But Co-Diagnostics is just getting started, and management expects its performance to be even better in the next quarter.
Investors should expect two catalysts for the stock price after the next earnings report. First, his new home-based saliva-based coronavirus diagnostic test was launched recently. Second, its joint venture in India started selling the company’s diagnostic test there in late November, which could further boost its revenue. The coming year will also be exciting for investors. Co-Diagnostics is working on a new molecular test that should be used in research settings to detect coronaviral mutations. It is also working on a new line of multiplexed tests for research that detect influenza A, influenza B and coronavirus in the same sample. Stay tuned in the company’s next earnings report to see how much new revenue these projects are earning and invest accordingly.