QQQ   284.41 (+0.21%)
AAPL   117.51 (+1.32%)
MSFT   214.65 (+0.20%)
FB   267.56 (+2.36%)
GOOGL   1,551.08 (+1.38%)
AMZN   3,217.01 (+0.31%)
TSLA   421.94 (-2.06%)
NVDA   545.82 (+1.09%)
BABA   309.81 (+1.48%)
CGC   18.88 (-4.69%)
GE   7.34 (+0.69%)
MU   53.53 (+1.71%)
AMD   81.56 (-0.54%)
T   26.76 (-0.45%)
F   7.74 (+1.98%)
ACB   4.56 (-3.18%)
GILD   60.55 (-0.03%)
NFLX   525.42 (-1.00%)
BA   167.24 (+0.08%)
BAC   24.14 (+1.77%)
DIS   124.95 (+0.58%)
QQQ   284.41 (+0.21%)
AAPL   117.51 (+1.32%)
MSFT   214.65 (+0.20%)
FB   267.56 (+2.36%)
GOOGL   1,551.08 (+1.38%)
AMZN   3,217.01 (+0.31%)
TSLA   421.94 (-2.06%)
NVDA   545.82 (+1.09%)
BABA   309.81 (+1.48%)
CGC   18.88 (-4.69%)
GE   7.34 (+0.69%)
MU   53.53 (+1.71%)
AMD   81.56 (-0.54%)
T   26.76 (-0.45%)
F   7.74 (+1.98%)
ACB   4.56 (-3.18%)
GILD   60.55 (-0.03%)
NFLX   525.42 (-1.00%)
BA   167.24 (+0.08%)
BAC   24.14 (+1.77%)
DIS   124.95 (+0.58%)
QQQ   284.41 (+0.21%)
AAPL   117.51 (+1.32%)
MSFT   214.65 (+0.20%)
FB   267.56 (+2.36%)
GOOGL   1,551.08 (+1.38%)
AMZN   3,217.01 (+0.31%)
TSLA   421.94 (-2.06%)
NVDA   545.82 (+1.09%)
BABA   309.81 (+1.48%)
CGC   18.88 (-4.69%)
GE   7.34 (+0.69%)
MU   53.53 (+1.71%)
AMD   81.56 (-0.54%)
T   26.76 (-0.45%)
F   7.74 (+1.98%)
ACB   4.56 (-3.18%)
GILD   60.55 (-0.03%)
NFLX   525.42 (-1.00%)
BA   167.24 (+0.08%)
BAC   24.14 (+1.77%)
DIS   124.95 (+0.58%)
QQQ   284.41 (+0.21%)
AAPL   117.51 (+1.32%)
MSFT   214.65 (+0.20%)
FB   267.56 (+2.36%)
GOOGL   1,551.08 (+1.38%)
AMZN   3,217.01 (+0.31%)
TSLA   421.94 (-2.06%)
NVDA   545.82 (+1.09%)
BABA   309.81 (+1.48%)
CGC   18.88 (-4.69%)
GE   7.34 (+0.69%)
MU   53.53 (+1.71%)
AMD   81.56 (-0.54%)
T   26.76 (-0.45%)
F   7.74 (+1.98%)
ACB   4.56 (-3.18%)
GILD   60.55 (-0.03%)
NFLX   525.42 (-1.00%)
BA   167.24 (+0.08%)
BAC   24.14 (+1.77%)
DIS   124.95 (+0.58%)
Log in

Novavax (NASDAQ:NVAX) Makes New Gains as Coronavirus Vaccine Advances

Friday, September 25, 2020 | Steve Anderson
Novavax (NASDAQ:NVAX) Makes New Gains as Coronavirus Vaccine Advances

The frantic race to be first to market with a coronavirus vaccine just got a new competitor, and that's a point that's giving many out there a cause to sigh with relief. While we've seen some of the greats hit that Phase 3 testing position, now there's one more to hit that high ceiling, and it's Novavax (NASDAQ:NVAX). With a coronavirus vaccine candidate now in Phase 3, Novavax is making new progress upward, and analysts are getting on board for the ride.

The Holy Grail of Pharmaceutical Developments

Hitting Phase 3 development is pretty much the last phase of testing, and those drugs that actually clear Phase 3 testing successfully have a fairly clear path to going live and being available for purchase. In Novavax's case, the Phase 3 tests will be particularly valid because it's staging the largest such tests seen yet. Recently, we saw AstraZeneca (LON:AZN) stage a test with 30,000 volunteers that didn't end as well as hoped after one volunteer ended up with a spinal injury. Meanwhile, Johnson & Johnson (NYSE:JNJ) staged its testing with 60,000 volunteers.

Novavax's test, meanwhile, will call on 100,000 volunteers, ranging in age from 18 to 84, and feature individuals that both have and don't have “relevant comorbidities,” the kinds of conditions like obesity and the like that may make an individual more susceptible to COVID-19. The test is set to run for the next four to six weeks, reports note, and also will be conducted with the Vaccines Taskforce element of the UK government. Novavax intends to make at least a quarter of those tested over 65 years old, in an effort to put a priority on groups most impacted by the disease.

Better yet for Novavax, if the drug ultimately ends up working, it has a partner ready to go to aid in manufacturing for wide dispersal. Endo (NASDAQ:ENDP), a generic drugmaker, has recently stepped in to manufacture the experimental vaccine. Some might consider this a case of “cart before the horse,” especially given that it's not clear that the drug actually works, but in the short term, there's still a need for 100,000 doses for the trial alone, and if the drug actually works, hitting the ground running with production-ready to go will be a valuable trait as more and more drugmakers get closer to that metaphorical finish line.

The Analysts Seem Happy, Too

For investors, though, there's got to be more afoot than a shot at a coronavirus vaccine to make it worth an investment. At least, that's likely the case from a stock currently selling at $108.18 a share as of this writing. The analyst picture suggests that's the case, as right now, there's a consensus rating of “buy” on the stock.

Reports noted that BidaskClub dropped its rating on Novavax from “strong-buy” to “buy” just a month ago, and then downgrading down to a “hold” before upgrading back to “buy”, which shows how volatile this stock can really be. Still, for right now, the consensus is leaning heavily toward “buy”. Though only six analysts are covering the stock, five of them have “buy” ratings in place while one has a “sell” rating, making it pretty clear this is a stock worth pursuing.

As for price targets, the current consensus is $159.25 a share, which is nearly 50% upside over its current price. Back in August, JPMorgan Chase & Co. upgraded Novavax from “neutral” to “overweight,” and on August 17, B. Riley reiterated its “buy” rating with a staggering price target of $257 per share.

Diversification Remains Key

If the stock were down in the $10 range or so, putting a bet on Novavax to cross that finish line ahead of other Phase 3 testing operations like Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) might make some sense. Since the stock is well over $100 a share, meanwhile, there needs to be some other element driving its gains in order to make it a worthwhile investment. Sure, there's room for more than one vaccine out there, especially if Pfizer's does come in first and that multi-dose affair that needs to be refrigerated at temperatures lower than those occurring at the South Pole gets to the front of the line. There's obvious room for a better product—like Johnson & Johnson's single-dose batch that can be refrigerated using normal refrigerators—to step in, and Novavax may have a hope there.

Still, Novavax is more that just COVID-19, with seasonal flu, Ebola, and more in the pipeline. That helps make Novavax more than a one-job shop, and improves its viability as an investment going forward. Novavax may not have the vaccine so many are waiting for, but even if they don't, there are others in play and that makes Novavax an investment to consider.

Companies Mentioned in This Article

CompanyBeat the Market™ RankCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Novavax (NVAX)1.9$98.36-3.6%N/A-35.77Buy$159.25
Pfizer (PFE)2.7$37.49-0.8%4.05%14.88Hold$39.61
Moderna (MRNA)1.6$71.31+0.5%N/A-50.94Buy$87.41
Endo International (ENDP)0.9$5.80+2.8%N/A-8.29Hold$5.33
Johnson & Johnson (JNJ)2.3$144.55+0.2%2.79%22.73Buy$166.08
Compare These Stocks  Add These Stocks to My Watchlist 

8 Artificial Intelligence Stocks That Will Make You Feel Like a Smart Investor

In 2018, it was cannabis. In 2019, it was 5G. And yet before either of those trends, artificial intelligence (or AI) was growing relentlessly and undeniably.

Artificial intelligence stems from the simple fact that computers are getting smarter. And they are being designed to process information faster. The words “machine learning” are being used to summarize the creation of algorithms, freed from human programmers, which train themselves on massive data sets. Earlier this year, two separate artificial intelligence “machines” demonstrated the ability to “read” Wikipedia entries and answer questions better than humans did.

But AI is more than a parlor trick. Chances are at some point today, you’ve experienced a benefit of artificial intelligence. You may have gotten to this page because of an internet search. You may have asked Alexa or your Google Assistant to perform a command. You may have voice-activated your Roomba vacuum. You may have used an AI-powered GPS system to get to wherever you’re reading this.

In the future, you may be hailing an autonomous car. A virtual assistant will be able to place calls for you to make appointments. But instead of sounding like a robot, the assistant will sound human, with an understanding of context and nuance. And those are just two applications. There will be more because the possibilities of artificial intelligence are expansive. But they can also be somewhat chilling. Many of the functions that are performed by humans today may be made obsolete by AI. But that’s a subject for another day.

Right now, you want to know how you can profit from this emerging trend.

You’ve come to the right place. In this special presentation, we will take a look at 8 stocks that can help you profit from the artificial intelligence trend.

View the "8 Artificial Intelligence Stocks That Will Make You Feel Like a Smart Investor".

Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.