The business prospects of many companies have been affected as a result of the COVID-19 pandemic. Blocks and general public caution about being infected with the new coronavirus have taken their toll. But there are also some companies that have seen their business prospects rise due to the viral outbreak, and their shares soared.
A handful of stocks have even generated staggering annual earnings of 2,300% or more. Here are the three best-performing coronavirus stocks so far in 2020.
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1. Vaxart
Vaxart (NASDAQ: VXRT) It ranks as the biggest winner of the year so far among the shares of companies with COVID-19 programs. Biotechnology stock has increased a whopping 3,400%. Just a few weeks ago, Vaxart was more than 4,700% higher to date.
There are two reasons for Vaxart’s tremendous rise. First, biotechnology started in 2020 with a really low market cap of around $ 17 million. Tiny stocks tend to make big leaps in the good news. Second, Vaxart had very good news.
In late January, Vaxart announced plans to develop an oral vaccine against the new coronavirus. Within three months, the company reported encouraging results from preclinical testing of its COVID-19 vaccine candidate. Its stock had increased so much in the interim period that Vaxart joined the Russell 3000 Index. Vaxart’s efforts were also rewarded in June with the US government’s Operation Warp Speed, which selected its candidate COVID-19 oral vaccine to be part of a challenge study with non-human primates.
2. Novavax
Novavax (NASDAQ: NVAX) trails very close to Vaxart. Biotech stocks have soared nearly 3,300% this year.
The company announced in late February that it was evaluating multiple candidates for the COVID-19 vaccine. In early April, Novavax had a selected candidate and began planning to start a phase 1 study in May. That clinical trial began on May 25. Just a couple of weeks earlier, Novavax raised up to $ 388 million in funding for its COVID-19 vaccine program from the Coalition for Epidemic Preparedness Innovations. In July, biotechnology won $ 1.6 billion in Operation Warp Speed funds.
However, Novavax’s COVID-19 vaccine candidate was not its only growth driver in 2020. The company also reported positive results in March of a late-stage study of the NanoFlu flu vaccine candidate. Novavax is now preparing to apply for regulatory approval of its experimental flu vaccine.
3. Co-diagnosis
Don’t think that all the winners of the year have been biotechnologists developing candidates for the coronavirus vaccine. Co-diagnosis (NASDAQ: CODX) stocks have increased more than 2,300% so far in 2020. And the company does not have any experimental drugs or vaccines in development.
Co-Diagnostics announced in early February that it had a COVID-19 diagnostic test ready for launch. She obtained a CE mark for her COVID-19 test at the end of the month, paving the way for exports to some countries. The company obtained FDA emergency use authorization for its COVID-19 tests in April.
Sales quickly gained momentum. So did the co-diagnosis actions. In June, the company was added to the Russell 2000 and Russell 3000 indices.
Are they buying now?
It is entirely possible that these three stocks of coronaviruses could maintain their winning forms for the rest of 2020 and until next year. However, I think only one of them is a share to buy right now.
My concern about Co-Diagnostics is that its valuation may be too high for a small business facing significant competition from much larger players. As for Vaxart, I am intrigued by its oral vaccine technology. But, in my opinion, the company’s candidates are not advanced enough in clinical trials to warrant investing in stocks.
That leaves Novavax. I’ve been a fan of biotech stocks for a while because of my optimism about NanoFlu’s prospects. While the FDA approval for the flu shot is not a success, I think NanoFlu’s chances of getting approval and becoming a commercial success are good. Novavax’s COVID-19 vaccine is a longer (no pun intended) vaccine. However, I think it could potentially be safe and effective in clinical trials.
Novavax is not an ideal stock for risk averse investors. But my opinion is that aggressive investors should see high-flying biotechnology.
