COVID-19 vaccine stocks tend to cycle widely and predictably. So, when BioNTech (NASDAQ:BNTX) and Moderna (NASDAQ:MRNA) fell recently, the bounce is almost predictable.
BNTX and MRNA continue to trade at lofty valuations. Markets are pricing growth in recurring revenue from vaccine sales for several years ahead. Given the emergency of at least two more virulent strains, sales for these mRNA vaccine developers will continue to accelerate.
AstraZeneca (NASDAQ:AZN) is the exception. Reports that its vaccine caused blood clots led many European countries to suspend the use of the vaccine. In Norway, authorities reported one unexpected death from brain hemorrhage and bleeding under the skin.
Ongoing concerns about AZN’s vaccine are unfortunate. The vaccine does not need cold temperatures for storage and is easier to transport. Still, earlier reports of lower efficacy at higher doses added to its confusion. It is also less effective than the BNTX and MRNA vaccine. Conversely, AZN tested the vaccine with the variant. Moderna initiated a new round of testing its vaccine efficacy on the variant.
MRNA stock moves sharply on momentum and sentiment. The stock offers tremendous upside and above-average risks. Investors who missed the $60-$80 entry price will want to wait for the selling pressure to ease first. BNTX trades at half the market capitalization but has the same volatility. Treat BNTX as a trade, too.