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Here's What You Need to Know Before Buying Coronavirus Vaccine Stocks

By Adria Cimino - Dec 17, 2020 at 9:51AM

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Consider these points about the companies -- and about your own investment style.

If you're interested in buying coronavirus vaccine stocks, there still are plenty of opportunities. And opportunities will remain as potential vaccines win authorization and generate revenue. In this Motley Fool Live video recorded on Dec. 11, 2020, healthcare and cannabis bureau chief Corinne Cardina and contributor Adria Cimino discuss important factors to consider before you get started.

Corinne Cardina: What are three things you think investors should consider before buying a coronavirus vaccine stock?

Adria Cimino: Well, one of the things I think is growth potential and this gets back to your comfort level of if you want to buy a smaller growth stock or a bigger stock. The idea is something like, for instance, Vaxart ( VXRT -4.90% ) is an $814 million company, whereas Johnson & Johnson ( JNJ -0.63% ) is a $400 billion company. You're going to have more potential for growth with Vaxart, but you also have higher risk because it's an unproven program. Consider that and see what you are more comfortable with. I would say also long-term opportunities versus the immediate pandemic -- or long-term opportunity and the immediate pandemic that we have right now. The idea is certain stocks might do really well right away on this via selling the vaccine. But how is that going to pan out into the future? I would like the company that has a lot of things in the pipeline so that eventually, if there is less demand for the vaccine, other things will pick up following that. Then finally, I would say other benefits can be various things like the fundamental business, dividends that might be paid. Like with a pharmaceutical company, you'll get dividends. With a small biotech, you won't. Also, the pipeline size. So, the size of the pipeline, the stages, and the product portfolio. A company that has a huge product portfolio with revenue that's been rising through the past few years, there's value in that too.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Johnson & Johnson Stock Quote
Johnson & Johnson
$157.09 (-0.63%) $0.99
Vaxart, Inc. Stock Quote
Vaxart, Inc.
$6.69 (-4.90%) $0.34

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