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.
What to know about investing in vaccine stocks
Before investing in a vaccine stock, find out about the status of the company's vaccines. Many companies already have vaccines on the market, while others may or may not win regulatory approvals.
Also, learn about any issues the vaccine makers have experienced. Even companies that have obtained the necessary regulatory authorizations can encounter problems that ultimately prevent them from achieving commercial success.
You should also consider a company's other products and pipeline drug candidates. The stocks of drugmakers with other successful products are less risky than those of companies that don't have other products on the market.
Top vaccine stocks
Here are four top vaccine stocks, plus two others to watch:
1. Pfizer
NYSE: PFE
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NASDAQ: BNTX
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4. GSK
OTC: BVNR.Y
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NYSE: EBS
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What to consider before investing in vaccine stocks
The following are some practical things to consider before you buy a vaccine stock:
- Know your risk tolerance. Some vaccine stocks can be highly volatile.
- Find out the patent expirations for current products. Stocks can decline as a patent cliff approaches.
- Evaluate the competitive landscape. Especially check to see if rival products are gaining market share.
- Research the vaccine maker's pipeline to assess its future growth potential.
- Make sure the stock's valuation is reasonable relative to its growth prospects.
Related investing topics
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 that 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.
FAQ
Vaccine stocks FAQ
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