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In this article, we will discuss the 10 best vaccine stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Vaccine Stocks To Buy Now.
One of the most defensive areas of the market is healthcare, and in 2022 when the markets are falling to new lows, healthcare is showing remarkable resilience and even signs of upside potential. On October 22, Carter Braxton Worth, a notable financial analyst and stock market strategist, appeared in an interview on CNBC where he discussed the strong price action that vaccine stocks are exhibiting and cemented his thesis on why he thinks some vaccine stocks are "poised to break out". Carter Worth noted that all sectors of the market, excluding energy, are down. However, within the sectors that are down, healthcare is down the least. Carter Worth analyzed the chart for the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) and its performance relative to the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and his analysis showed that healthcare is outperforming the S&P 500 in 2022. Carter Worth named some stocks that are "at 52-week highs and poised to break out". Among his mentions were Eli Lilly and Company (NYSE:LLY) and Merck & Co., Inc. (NYSE:MRK). Carter Worth said that "we know that healthcare is up more than the market in the sense that it is down less than the market" and that the two stocks from his mentions "are actually up" and investors should "buy them both".
The stock market is in distress in 2022. As of October 28, the S&P 500 is down 19.3% for the year, the Nasdaq has lost 30.6% since the beginning of the year, and the Dow has tanked 10.7% year to date. The healthcare sector, however, is exhibiting resilience and as of October 28, the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) is down roughly 5% for the year, outperforming all major market indices. Some of the best vaccine stocks to buy now include Eli Lilly and Company (NYSE:LLY), Merck & Co., Inc. (NYSE:MRK), and Pfizer Inc. (NYSE:PFE).
Photo by National Cancer Institute on Unsplash
Our Methodology
To determine the best vaccine stocks to buy now, we screened for vaccine companies that had innovative products, solid pipelines, and industry-leading positions. We narrowed down our selection to companies that had positive market sentiment and the potential to capture further market share. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, and relevant metrics that can help our readers make informed investment decisions. These stocks are ranked according to their popularity among elite hedge funds.
10 Best Vaccine Stocks To Buy Now
10. Dynavax Technologies Corporation (NASDAQ:DVAX)
Number of Hedge Fund Holders: 18
Dynavax Technologies Corporation (NASDAQ:DVAX) is a clinical-stage immunotherapy company that is focused on discovering, developing, and commercializing products to prevent and treat infectious and inflammatory diseases in the United States. The company's lead product candidate is HEPLISAV-B, a hepatitis B vaccine for individuals of age 18 years and older. The stock is attractively valued and is presenting an optimal buying opportunity for investors. As of October 28, Dynavax Technologies Corporation (NASDAQ:DVAX) is trading at a PE multiple of 7x. The stock ranks among the best vaccine stocks to buy now.
Wall Street is bullish on Dynavax Technologies Corporation (NASDAQ:DVAX). On September 27, JMP Securities analyst Roy Buchanan took coverage of Dynavax Technologies Corporation (NASDAQ:DVAX) with an Outperform rating and a $22 price target.
At the close of Q2 2022, 18 hedge funds disclosed ownership of stakes in Dynavax Technologies Corporation (NASDAQ:DVAX). These funds held collective stakes of $206.8 million in the company, up from $191.3 million in the previous quarter with 22 positions.
As of June 30, Fisher Asset Management is the largest shareholder in Dynavax Technologies Corporation (NASDAQ:DVAX) and has stakes worth $53.9 million in the company.
Some of the best-in-class vaccine manufacturers that are expected to capture further market share include Eli Lilly and Company (NYSE:LLY), Merck & Co., Inc. (NYSE:MRK), and Pfizer Inc. (NYSE:PFE).
9. Novavax, Inc. (NASDAQ:NVAX)
Number of Hedge Fund Holders: 25
Novavax, Inc. (NASDAQ:NVAX) is a clinical-stage vaccine company focused on the discovery, development, and commercialization of vaccines to prevent serious infectious diseases. The company's lead product candidate is NVX-CoV2373, which is in Phase III clinical trials for the prevention of COVID-19. The stock has been on a wild ride in 2022 but has started to rebound in recent days. As of October 28, the stock has gained 15.9% over the past month.
On October 19, Novavax, Inc. (NASDAQ:NVAX) announced that its COVID-19 Vaccine, NVX-CoV2373, has received emergency use authorization from the FDA. Novavax, Inc. (NASDAQ:NVAX) has a competitive management team with extensive experience in the vaccine industry, and a robust clinical pipeline with several other potential candidates in early- to late-stage development. The stock is one of the best vaccine stocks to buy now.
Over the past three months, Novavax, Inc. (NASDAQ:NVAX) has received 3 Buy ratings from Wall Street analysts and has an average price target of $67, which represents an upside of 196% from current levels.
At the end of Q2 2022, 25 hedge funds were bullish on Novavax, Inc. (NASDAQ:NVAX) and held stakes worth $255.6 million in the company. This is compared to 27 positions in the preceding quarter with stakes worth $278.7 million. As of June 30, Coatue Management is the largest shareholder in Novavax, Inc. (NASDAQ:NVAX) and has stakes worth $63.8 million in the company.
8. Sanofi (NYSE:SNY)
Number of Hedge Fund Holders: 28
Sanofi (NYSE:SNY) is a large, publicly traded French pharmaceutical company with a long history of success. The company has a diversified product portfolio that includes both prescription and over-the-counter drugs, as well as vaccines. Sanofi (NYSE:SNY) also has a strong presence in emerging markets, which is expected to continue to grow. The company has a good track record of delivering shareholder value and is expected to continue to do so in the future. Sanofi (NYSE:SNY) ranks among the best vaccine stocks to buy now.
Sanofi (NYSE:SNY) is trading at an attractive valuation and is awarding investors with dividends. As of October 28, the stock has a trailing twelve-month PE ratio of 16 and is offering a forward dividend yield of 4.23%. The company has free cash flows of EUR 2.85 billion.
On September 7, Deutsche Bank analyst Emmanuel Papadakis revised his price target on Sanofi (NYSE:SNY) to EUR 85 from EUR 90 and maintained a Hold rating on the shares. This September, Credit Suisse analyst Dominic Lunn adjusted his price target on Sanofi (NYSE:SNY) to EUR 106 from EUR 110 and reiterated an Outperform rating on the shares.
At the close of Q2 2022, 28 hedge funds were long Sanofi (NYSE:SNY) and held stakes worth $1.68 billion in the company. This is compared to 19 positions in the preceding quarter with stakes worth $1.57 billion. The hedge fund sentiment for the stock is positive.
As of June 30, Fisher Asset Management is the leading shareholder in Sanofi (NYSE:SNY) and has stakes worth $881 million in the company.
7. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 34
GSK plc (NYSE:GSK) is a large, well-established pharmaceutical company with a long history of profitability. The company has a strong portfolio of products, including many blockbuster drugs, and a strong pipeline of new drugs in development. On October 27, GSK plc (NYSE:GSK) announced that the European Medicines Agency has accepted to review its respiratory syncytial virus older adult vaccine candidate. The company also said that it expects to hear a regulatory decision in the third quarter of 2023, and if regulatory approval is granted, the company's vaccine will be the first vaccine available to help protect senior citizens from RSV lower respiratory tract disease. GSK plc (NYSE:GSK) ranks among the best vaccine stocks to buy now.
On August 5, Morgan Stanley analyst Mark Purcell resumed coverage of GSK plc (NYSE:GSK) with an Equal Weight rating and a 1,860 GBP price target. This August, UBS analyst Laura Sutcliffe revised her target on GSK plc (NYSE:GSK) to 1,820 GBP from 1,860 GBP and reiterated a Neutral rating on the shares.
At the end of Q2 2022, 34 hedge funds held stakes in GSK plc (NYSE:GSK). These funds held collective stakes of $2.37 billion in the company, up from $2.31 billion in the preceding quarter with 33 positions. The hedge fund sentiment for the stock is positive.
As of June 30, Fisher Asset Management is the most prominent shareholder in GSK plc (NYSE:GSK) and has stakes worth $851.8 million in the company.
6. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 45
Moderna, Inc. (NASDAQ:MRNA) is a clinical-stage biotechnology company that focuses on discovering, developing, and commercializing therapeutic vaccines based on messenger RNA. The company is one of the largest and best-in-class vaccine makers in the world. The company's mRNA technology platform is being used to develop a pipeline of vaccines and therapeutics against a range of infectious diseases, cancer, and other conditions. Moderna, Inc. (NASDAQ:MRNA) has a strong balance sheet, with over $9.2 billion in free cash flow. The company is well-positioned to commercialize its products and continue to invest in its R&D pipeline. Moderna, Inc. (NASDAQ:MRNA) ranks high among the best vaccine stocks to invest in right now.
On October 21, SVB Securities analyst Mani Foroohar raised his price target on Moderna, Inc. (NASDAQ:MRNA) to $101 from $72 and upgraded the stock to Market Perform from Underperform. This October, Morgan Stanley analyst Matthew Harrison maintained an Equal Weight rating and his $175 price target on Moderna, Inc. (NASDAQ:MRNA).
At the close of Q2 2022, Moderna, Inc. (NASDAQ:MRNA) was spotted on 45 hedge fund portfolios. These funds disclosed stakes of $2.63 billion in the company. Of these funds, Theleme Partners is the top shareholder in the company and has stakes worth $907.7 million.
Here is what Baron Funds had to say about Moderna, Inc. (NASDAQ:MRNA) in its third-quarter 2022 investor letter:
“Within biotechnology, underperformance of Moderna, Inc. (NASDAQ:MRNA) and lower exposure to this better performing sub-industry weighed the most on relative performance. Shares of Moderna, a leader in the emerging field of mRNA-based vaccines and therapeutics, declined due to increasing uncertainty around what a booster market could look like as COVID shifts away from pandemic status and becomes an increasingly commercial market rather than government funded.”
In addition to Moderna, Inc. (NASDAQ:MRNA), investors can rack up shares of Eli Lilly and Company (NYSE:LLY), Merck & Co., Inc. (NYSE:MRK), and Pfizer Inc. (NYSE:PFE) to benefit from secular tailwinds and growth in the healthcare industry.
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Disclosure: None. 10 Best Vaccine Stocks To Buy Now is originally published on Insider Monkey.
