Crisis is quickly creating opportunity for protective gear and vaccine companies
The coronavirus has been dominating the headlines — and in turn, affecting the markets and stocks to buy and sell everywhere.
To date, more than 4,500 people have been infected, with a nurse in Wahun saying up to 90,000 people are actually sick. Now, more than 100 people have died. Chinese hospitals are reportedly overwhelmed, and Lunar New Year celebrations have been canceled.
Multiple cases have now been spotted in Hong Kong, as well as other major countries such as Japan, Australia, France and the United States. In fact, in the U.S. the Centers for Disease Control and Prevention (CDC) recently confirmed its fifth case in Arizona.
Additionally, officials from the CDC noted that 110 people from 26 U.S. states are now being monitored for the illness. However, officials say “the immediate health risk from the new virus to the general American public is low at this time.”
The World Health Organization (WHO) has not yet declared a public health emergency. However, that could quickly change as the virus continues to spread. With such a crisis, the top stocks to buy at the moment are those that sell protective gear, and vaccines.
In fact, here are three of the top coronavirus stocks to watch for the next few weeks.
Coronavirus Stocks to Buy: Alpha Pro Tech (APT)
Over the last few trading sessions, shares of Alpha Pro Tech (NYSE:APT) have exploded from a low of $3.41 to a high of $7.86 on sizable volume spikes.
We saw a similar spike during the 2003 SARS issue. During this timeframe, shares of APT stock skyrocketed from a low of 91 cents to a high of $3.20.
This is the company that makes disposable face masks for the public, along with other medical-type gear. This includes disposable body suits, eye shields and shoe covers for healthcare folks exposed to patients with coronavirus. It made a name for itself as consumers ran to get protective masks during the bird flu, Middle Eastern Respiratory Syndrome (MERS) and Ebola outbreaks, too.
In short, it’s is a solid crisis and opportunity trade. However, once crises has averted, the stock will likely tend to pullback; After all, a lack of catalysts will do that.
However, at the moment, APT appears to be a great stock to buy for the near-term.
Inovio Pharmaceuticals (INO)
Over the last few sessions, shares of Inovio Pharmaceuticals (NASDAQ:INO) ran from a low of $3.33 to a high of $5.95. All after receiving a grant of around $9 million from the Coalition for Epidemic Preparedness Innovations (CEPI) to develop a vaccine for the virus.
At the moment, the grant will support pre-clinical work and a Phase 1 trial for a vaccine. INO also has experience with coronavirus vaccines, including one for MERS that was caused by a different type of coronavirus.
Furthermore, Maxim Group analyst Jason McCarthy reiterated his “buy” rating on INO stock and his price target of $6.00 — 28% higher than its current price. In note to clients, McCarthy said the “previously developed vaccine candidates for MERS and Zika was a key reason why CEPI picked Inovio for 2019-nCoV.”
That said, all of these developments are making INO look like a great stock to buy for the coming weeks.
Moderna Inc. (MRNA)
Shares of drugmaker Moderna (NASDAQ:MRNA) ran from a low of $17.90 in recent weeks to a high of $23.50 as of Tuesday.
This rise comes after news that the company could run human trials by April to test a vaccine for the virus. Additionally, Anthony Fauci — director of the U.S. National Institute of Allergy and Infectious Disease — spoke on the update:
“We anticipate that unless we get in any land mines or unforeseen obstacles, that we will likely have material available to do an early Phase 1 study in about three months.”
Also, just last week, the company also announced the National Institute of Allergy and Infectious Diseases will run a Phase 1 trial of an experimental vaccine being developed by Moderna.
MRNA stock has jumped more than 13% since the year began. And with the coronavirus looking more and more likely to stick around for awhile, Moderna is looking like another great stock to buy.
Author: Ian Cooper
Source: Investorplace: 3 Coronavirus Stocks to Buy Until Crisis Is Averted