Connect with us

Hi, what are you looking for?

Investing

500Investments review of COVID-19 cure manufacturers’ stock conditions

Covid Astrazeneca

Throughout 2020 there had been increased attention on healthcare companies working on COVID-19 cures.

On one side, because the whole world was expecting a way out of the pandemic, and on the other, due to the potential of stock market valuations for these companies to increase.

There are already three effective vaccines and other drugs still in the research phase, which is why it would be important to analyze some of the leading brands, as well as their stock price prospects. 500Investments wants to share its opinions on four leading companies, where stock potential is likely headed, as well as downside risks that might turn into reality over the course of 2021.

Alt-text: COVID-19 cure manufacturers analysis

Pfizer (PFE)

The Pfizer vaccine was the first to be approved and rolled out, creating a short-term stock price boost. However, as competitors like Moderna and AstraZeneca followed with their own vaccine versions, the PFE stock started to weaken. After three consecutive weeks of selling, the price currently trades around $36, still up since March 2020.

Although it has managed to come out with an effective vaccine ahead of other companies, several downsides are now priced in by the market. It needs to be stored at -70 degrees Celsius and is among the most expensive. The US has managed to end 2020 with around 3 million doses administered, and without Pfizer that would not have been possible, yet now that the initial hype has vanished, other factors will weigh on the stock price.

Competition among several companies is beneficial for the consumer and in 2021 Pfizer may announce improved versions of its vaccine. It can collect more data and see where adjustments can be made. It is yet to be seen if the stock price resumes its upside. The key technical area to watch is around $44. In case that is breached, the buyers have a clear way toward all-time highs.

Johnson & Johnson (JNJ)

JNJ has not yet released its COVID-19 vaccine, but it is expected to reveal late-stage data this January. Around 45,000 participants have already signed up to receive the vaccine, developed with the company’s medical research and development subsidiary, Janssen.

Some people might believe the company is late to the party. However, its vaccine comes with several important advantages. First, this is a solution requiring only a single dose. Second, initial trials show 98% of participants have developed antibodies against COVID-19 within a month after receiving the shot.

Third, its price is cheaper when compared to Moderna or Pfizer. Most companies signed confidentiality agreements with governments, yet the exact pricing was made public in mid-December, as reported by The Guardian.

In terms of the stock price, the technical picture is more favorable, since buyers are squeezing the price action near the all-time highs, around $156. JNJ looks poised to continue its rally higher, with $170 and $180 and the near-term resistance areas. As it happened with other companies, positive news related to the vaccine could act as a catalyzer for a new impulsive push higher.

Gilead (GILD)

Gilead Sciences Inc was one of the companies in the spotlight at the beginning of 2020, due to its antiviral drug – Remdesivir, which had been used globally as a temporary treatment for COVID-19. The stock price rose from $64 to $85 within weeks, but investors were unable to sustain gains.

Currently trading around $60, the stock has given up all the gains and is trading near levels not seen since 2013. The prospects for GILD are not favorable, given now there are vaccines for COVID-19. The only way for a new bullish run is if the company develops a new important cure. Technically speaking, the picture is favoring sellers.

Abbvie (ABBV)

Abbvie continues to be one of the largest healthcare companies in the world and its recently discovered COVID-19 antibody has drawn a lot of attention. Developed in partnership with Harbour BioMed, the Netherlands’ Utrecht University and Erasmus Medical Center, 47D11 is an antibody effective against SARS-CoV-2 and other related mutations.

The ABBV stock has been showing an impressive performance since October 2020, rising from $80 to around $105 at the time of writing. From a technical standpoint, more gains should follow, given the price is creating new, higher highs. With the all-time high located around $126, there is plenty of upside potential, especially if the company comes up with an effective drug over the course of the next few months.

Summary

COVID-19 cure manufacturers are expected to have a very active year, given the pandemic is yet to be defeated. As a result, their stocks will remain volatile and plenty of new investing opportunities will arise. Delays in vaccine distribution and rollout could have short-term negative implications, but in the longer run, companies that are very competitive will manage to come on top.

Read more:
500Investments review of COVID-19 cure manufacturers’ stock conditions

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) sees the country posting a wider balance of payments (BoP) deficit this year as the global outlook remains...

Investing

HMRC’s new penalty regime for late filing and late payments of VAT will be fairer but more complex with interest being charged on all...

Economy

Economic managers said they “strongly support” the creation of the Maharlika Wealth Fund (MWF), after lawmakers agreed to remove a provision in the bill...

Investing

If you’ve been waiting ages for an online order to arrive, you’re not alone. Companies including ASOS, H&M and JD Sports have been getting...

Investing

Ulster University economists expect the Northern Ireland economy to shrink next year, followed by a weak recovery in 2024. The Ulster University Economic Policy...

Investing

The number of people working in programming and computer consultancy has risen by more than 250,000 workers over the past decade, according to Census...

You May Also Like

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.