Please ensure Javascript is enabled for purposes of website accessibility

What You Need to Know About COVID Vaccine Investing Right Now

By Adria Cimino - Updated Jan 29, 2021 at 8:16AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has to do with risk.

Investing in coronavirus vaccine stocks today is a lot different from investing in them last year. Then, they represented a big risk. Companies hadn't yet produced data on safety or efficacy, for example. These days, clinical trials have reached advanced stages. And Moderna (MRNA 5.95%) and Pfizer (PFE -0.93%) have gotten even farther, commercializing their vaccines. In this Motley Fool Live video recorded on Jan. 22, 2021, healthcare and cannabis bureau chief Corinne Cardina and Fool.com contributor Adria Cimino discuss key points to keep in mind before investing in the sector today.

Corinne Cardina: What are three investor takeaways about investing in the coronavirus vaccine space today, 12 months after the pandemic really began?

Adria Cimino: Well, I think that investment in vaccines today is less risky since you can bet on later-stage companies, or now those with authorized products. So it's open to more investors. Before, it was just those who really didn't mind risk would get right in. But if you were more cautious investor, you were really kind of left out. My second point, with that idea in mind, cautious investors should aim to invest in the lower risk opportunities, maybe the company that already has a product out, or is really close to market with their products. And there's still room for aggressive investors who want to search for those smaller companies that maybe have something in pre-clinical or phase 1 and they might get a real increase in their investment. Finally, it's always important to diversify. Don't just invest only in COVID vaccines stocks, only in a company for its vaccine candidate. You want to invest for the whole pipeline or all the commercialized products.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Moderna, Inc. Stock Quote
Moderna, Inc.
MRNA
$137.91 (5.95%) $7.74
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$49.92 (-0.93%) $0.47

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.