COVID-19 isn't as concerning to many Americans as it was in 2020. Unsurprisingly, sales of COVID-19 vaccines have plunged. Does that mean investors should throw in the towel on vaccine stocks? Not at all. Vaccine stocks are shares of publicly traded companies involved in the development of vaccines that immunize against many disease-causing microorganisms -- not just the virus that causes COVID-19.
For one thing, COVID-19 vaccines continue to generate significant revenue despite the sales declines. More importantly, there are lots of other types of vaccines that are key growth drivers for some pharmaceutical companies.
Here's what you need to know about investing in the top vaccine stocks, along with our top vaccine stock picks.
Top vaccine stocks to consider
Here are four top vaccine stocks, plus two others to watch:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Pfizer (NYSE:PFE) | $153.4 billion | 6.38% | Pharmaceuticals |
| BioNTech Se (NASDAQ:BNTX) | $22.4 billion | 0.00% | Biotechnology |
| Moderna (NASDAQ:MRNA) | $20.3 billion | 0.00% | Biotechnology |
| GSK (NYSE:GSK) | $103.8 billion | 3.44% | Pharmaceuticals |
| Bavarian Nordic A/s (OTC:BVNRY) | $2.3 billion | 0.00% | Biotechnology |
| Emergent BioSolutions (NYSE:EBS) | $424.0 million | 0.00% | Biotechnology |
1. Pfizer
NYSE: PFE
Key Data Points
NASDAQ: BNTX
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NASDAQ: MRNA
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4. GSK
NYSE: GSK
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OTC: BVNRY
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NYSE: EBS
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What to know about investing in vaccine stocks
Before buying a vaccine stock, start by understanding where the company’s vaccines stand. Some already have approved products on the market, while others are still seeking regulatory clearance — and approval is never guaranteed. Even after approval, manufacturing, distribution, or safety concerns can limit commercial success.
It’s also important to look beyond a single vaccine. Companies with multiple products or a strong pipeline tend to be less risky than those relying on one candidate.
Key factors to evaluate include:
- Your risk tolerance: Vaccine stocks can be volatile, especially around trial results or regulatory decisions.
- Patent timelines: Revenue can drop as patents near expiration.
- Competition: Check whether rival vaccines are gaining share.
- Pipeline strength: Future growth often depends on what’s in development.
- Valuation: Make sure the price reflects realistic growth prospects.
Why invest in vaccine stocks?
There are several reasons to consider investing in vaccine stocks, with the following especially standing out:
- Robust long-term growth prospects for the global vaccine market
- Technological breakthroughs
- Aging populations
- Promising vaccine pipelines
How to invest in vaccine stocks
Follow these steps to invest in vaccine stocks:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Global vaccine market outlook
Estimates vary on how much the global vaccine market is expected to grow over the next several years.
Market research company Research and Markets projects that the global vaccine market will grow from roughly $50.5 billion in 2025 to $63.7 billion by 2030, representing a compound annual growth rate (CAGR) of 4.8%. However, Mordor Intelligence estimates the global vaccine market will expand by a CAGR of around 6.5% between 2025 and 2030, reaching $114.8 billion by the end of the decade.
Coherent Market Insights seems to align relatively well with Mordor Intelligence. The market researcher predicts that the global vaccine market will grow by a CAGR of 6.2% to $124.9 billion by 2032.
Key factors affecting the growth of the global vaccine market include:
- Technological innovation.
- Prevalence of infectious diseases.
- Government support of vaccination.
- Demographic trends.
Related investing topics
FAQ
Vaccine stocks FAQ
About the Author
Keith Speights has positions in Pfizer. The Motley Fool has positions in and recommends Merck, Moderna, and Pfizer. The Motley Fool recommends BioNTech Se, Emergent BioSolutions, and GSK. The Motley Fool has a disclosure policy.
