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3 Best Coronavirus Stocks to Watch in September

By Zhiyuan Sun – Sep 13, 2020 at 5:08AM

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The momentum is not yet over for these three promising companies that are doing their part in combating the COVID-19 pandemic.

The COVID-19 pandemic has revolutionized everyday life. Biotech companies are working tirelessly to find a cure for the deadly virus. Meanwhile, working at home has become the norm for many, while the sky has become the limit for the growth of e-commerce.

Although everyone has been talking about coronavirus vaccine, treatment, and testing stocks, there are also ample opportunities to make money investing in companies handling the logistical problems caused by the pandemic. Today, let us take a look at three of the best coronavirus stocks that can make investors rich in September. 

Nurse holding a dose of COVID-19 vaccine.

Image Source: Getty Images.

1. Pfizer

During the second quarter of 2020, Pfizer's (PFE -1.10%) biopharma segment gave a solid performance in which sales expanded by 6% year over year, with continuing growth from its heart disease, blood clot, and biosimilar medications. Meanwhile, revenue for the oncology segment increased by 20% over last year.

Overall sales were down 9% annually to $11.8 billion, largely as a result of COVID-19-related restrictions that have hindered patient access to Pfizer's medications. However, management is confident that they can stage a quick turnaround, expecting revenue to rebound by more than 6% per year until 2025. 

The trump card Pfizer has in its pipeline is BNT162b2, an experimental vaccine against SARS-CoV-2 that it's working on in partnership with Germany's BioNTech. Currently, BNT162b2 is approaching the end of its phase 2/3 clinical trials. It may be given emergency use authorization by the U.S. Food and Drug Administration as early as October, contingent on positive top-line results.

As of July, the U.S. and U.K. governments had indicated they would order a total of up to 630 million doses of the vaccine if it can demonstrate efficacy. At a price of $19.50 per dose, that could potentially be a multibillion-dollar growth catalyst for Pfizer.

For the full fiscal year, management expects Pfizer to generate about $50 billion in revenue and $2.90 in earnings per share. Pfizer trades for about 13 times forward earnings, making it an enticing choice for value investors in the biotech sector. Shares have barely moved from this time one year ago. 

Woman video conferencing with her peers.

Image Source: Getty Images.

2. Zoom 

While Pfizer is busy developing a COVID-19 vaccine, Zoom Video Communications (ZM -0.12%) handles another key logistical aspect of the coronavirus pandemic: the need for videoconferencing. As companies and schools worldwide have moved to the digital platform to keep workers safe, the demand for Zoom's services has skyrocketed.

During its quarter ended June 30, 304,000 businesses with at least 10 employees joined the company's video call service, an increase of 458% over Q2 2020. At the same time, Zoom recognized revenue growth of 355% compared to last year, bringing in $664 million in sales.

The company now has 988 customers that have generated at least six figures in revenue apiece over the past 12 months. And management has been able to turn these new sales into a substantial profit for shareholders, with earnings per share up more than tenfold to $0.92 for the quarter.

For the entirety of 2020, management expects to bring in more than $2 billion in revenue and generate up to $2.47 in earnings per share. During the past year, shares of Zoom have rallied by more than 330%, but that doesn't mean they're out of room to run.

Delivering groceries to the doorstep.

Image Source: Getty Images.

3. Shopify

Last but not least, Shopify (SHOP 0.67%) is playing a crucial role in helping retail businesses move their sales channels online as coronavirus lockdowns force store closures. In the most recent quarter alone, Shopify's revenue was up 97% year over year to $714.3 million. More than 30,000 users have referred their fellow merchants to the platform over the past 12 months, and overall, stores on Shopify sold 1.5 times more products in Q2 2020 than in Q4 2019.

On a cumulative basis, over $200 billion worth of merchandise has been processed on Shopify's platform since inception, with Shop Pay responsible for handling $11 billion of that total. Moreover, by the end of June, the company had lent more than $1.2 billion to merchants needing to kick-start their businesses.

Retail stores are not the only ones seeking Shopify's expertise in e-commerce. The company is now working with food services, businesses, and grocery-chain clients to assist with deliveries, as well. Between last September and today, Shopify's stock is up by more than 150%. As with Zoom, though, this doesn't mean it's done growing.

Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify and Zoom Video Communications. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Pfizer Inc. Stock Quote
Pfizer Inc.
$44.08 (-1.10%) $0.49
Shopify Inc. Stock Quote
Shopify Inc.
$28.76 (0.67%) $0.19
Zoom Video Communications Stock Quote
Zoom Video Communications
$74.45 (-0.12%) $0.09
BioNTech SE Stock Quote
BioNTech SE
$128.35 (-1.27%) $-1.65

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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