Coronavirus vaccines are coming – or at least the barriers are making them look better every day.
Investors who want to reap the potential benefits of a coronavirus vaccine have plenty of options to choose from. However, the number of low-risk leaders in the race is low. Here are three coronavirus vaccine stocks that are relatively safe right now.
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1. AstraZeneca
You may wonder why AstraZeneca (NYSE: AZN) This ranks first on the list. After the clinical trial participant experienced an unexplained illness, the major drug manufacturer temporarily stopped late-stage testing of COVID-19 vaccine candidate AZD1222. Even with this shock, AstraZeneca seems to be a nice stock to buy when you look at the bigger picture.
First of all, it is possible that the AZD1222 will be back on track soon. Phase 3 testing of the experimental vaccine has already resumed in the UK AstraZeneca CEO Pascal Soriot expects the company to be in a position to announce the interim results of the study before the end of this year.
The main reasons to buy AstraZeneca, however, are its strong product lineup and promising pipeline. AstraZeneca’s cancer drugs are enjoying a particularly tremendous momentum, with three blockbusters growing by 45% or more in the first half of 2020. The drugmaker also has a pipeline full of potential winners, including nine new candidates in late-stage testing.
It is not surprising that Wall Street analysts expect AstraZeneca’s average annual earnings to grow by 19% over the next five years. Investors should also like the solid dividend of the pharma company, which currently earns more than 2.5%.
2. Pfizer
Bill Gates thinks Pfizer (NYSE: PFE) The coronavirus vaccine is a clear leader in the race. That’s probably true. Large pharmaceutical company and its partner, German Biotech Biotech (Nasdaq: BNTX), His Covid-19 vaccine candidate seems to be on track to report early-stage results sooner than other competitors for BNNT162B2.
If Pfizer and Bioentech obtain authorization for emergency use from the Food and Drug Administration, they will be subject to U.S. sanctions. BNT from the government. The deal could be expanded to include 400 million doses. In addition, both companies have large supply deals with Canada and Japan and are negotiating agreements with the European Commission.
However, regardless of what happens to the BNT162B2, Pfizer’s growth should soon get a nice boost. The company hopes to close with the merger of its subsidiary unit Mylan (Nasdaq: MYY) In the fourth quarter. The transaction will divert Pfizer’s older drugs, which have lost patent exclusivity. It will leave Pfizer with a solid lineup of winners, such as the blood-thinning Elixir and the rare-disease drug Wyndacel, plus a pipeline with 90 clinical programs awaiting four regulatory approvals and 23 in late-stage testing.
Investors who choose to keep their shares in a new entity created by the Upzone-Mylan merger (Vyatris) will receive a joint dividend from Pfizer and Vyatris, which is approximately the same as the pager paid by Pfizer. Pfizer’s dividend yield is currently 1.1%. But investors who choose to sell their stake in Viotris will still be able to enjoy attractive dividends.
3. Johnson and Johnson
Of Johnson and Johnson No.(NYSE: JNJ) With its coronavirus vaccine program lags behind AstraZeneca and Pfizer. However, the healthcare giant plans to launch a phase-out clinical study of Ad26.COV2.S later this month.
Do not underestimate the potential of J&J in the COVID-19 vaccine race. The company can benefit greatly: when a competitor needs two doses of the vaccine, Ad26.COV2.S can be effective with only one dose.
Of course, the sales generated by the successful coronavirus vaccine will still be a drop in Johnson & Johnson’s bucket. The company had a revenue of over 82 82 billion last year. It is a leader in consumer health, medical devices and pharmaceuticals. Jammu and whose economic condition allows it to invest in research and development and acquisitions to ensure that it stays on top.
Like AstraZeneca and Pfizer, Johnson and Johnson offer strong dividends (currently yielding 2.7%). Even better, J&J is a dividend aristocrat with an impressive track record of 58 consecutive years of dividend growth.
