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Does a rising tide really lift all boats? We’ll soon find out whether this adage applies to the stock market.
The bull market is well underway right now.of S&P500 has soared more than 30% in the past 12 months, but not all stocks have benefited from the overall market momentum so far. But two Motley Fool contributors think he’s identified great stocks that are still down more than 30% from their 52-week highs and are worth buying now.
Pfizer: down 34% in the past 12 months
Adria Cimino (Pfizer): pfizer (New York Stock Exchange: PFE) The company became a stock market star at the height of the pandemic thanks to its coronavirus vaccines and treatments. These products helped the company reach an all-time high of over $100 billion in annual revenue.
However, demand has been decreasing recently, and the company’s profits do not seem to be as strong. It doesn’t help matters, either, that some of the blockbuster drugs on the company’s shelves are on track to lose exclusivity later this decade.
However, there is a silver lining to this dark cloud. Pfizer may be moving into an exciting new phase of growth thanks to in-house product development and major acquisitions.
Last year was a record year for Pfizer’s product approvals. The company has secured nine approvals for new molecular entities and additional approvals for expanded indications for already commercialized products. These efforts should bear fruit both in the short term and in the future. Pfizer expects potential revenue to reach $20 billion by 2030 with new approvals. That should more than make up for the $17 billion the company expects to lose due to patent expirations on older products.
Another part of Pfizer’s transition is the company expanding its focus on oncology through its acquisition of Seegen. With Seagen, Pfizer has added his four approved oncology products. The move provides a series of near-term catalysts through the first half of next year, including four priority indication launches, seven Phase 3 data readouts and six potential Phase 3 trial starts.
Pfizer predicts its oncology strategy will yield more than eight potential blockbuster products by the end of the 2010s. So the bet on oncology is big, and clearly has the potential to boost Pfizer’s earnings and stock price in the coming months and over the long term.
Pfizer’s stock price has fallen more than 30% over the past year and trades at 12 times estimated earnings. Pfizer stock looks cheap at today’s levels, given the company’s wave of new products and Seagen’s potential to introduce commercialized products and R&D expertise.
Moderna: down 35% in the past 12 months.
Keith Spates (Moderna): The same COVID-19 headwinds that plagued Pfizer are also having a negative impact. moderna (NASDAQ:MRNA). Over the past 12 months, the vaccine maker’s stock price has fallen nearly 30%. But I think Moderna is finally a great stock to buy again.
The U.S. Food and Drug Administration (FDA) has set the PDUFA date for approval decision for Moderna’s respiratory syncytial virus (RSV) vaccine mRNA-1345 to May 12, 2024. I fully expect the FDA to give mRNA-1345 a thumbs up. I also expect that he will recommend the RSV vaccine when the US CDC Advisory Committee on Immunization Practices (ACIP) meets in late June.
Moderna will compete against Pfizer, GSK In the RSV market, both companies have already won FDA approval for their respective RSV vaccines, but there should be plenty of room for all three to gain. But Moderna could benefit two major drug companies with its mRNA-1345 prefilled syringe, which would save pharmacists and doctors time administering the drug.
Thanks to the expected commercial success of mRNA-1345, Moderna projects a return to organic sales growth in 2025. The company also expects to reach breakeven again in 2026.
The new RSV vaccine probably won’t be Moderna’s only growth driver in the coming years. The company hopes to apply for approval of seasonal influenza vaccine mRNA-1010 in the second half of 2024. The company also has several promising late-stage programs, including influenza/COVID-19 combination vaccine mRNA-1083 and cytomegalovirus vaccine mRNA-1647, among others. , and cancer vaccine mRNA-4157.
No warranty
There is no guarantee that Pfizer or Moderna will rebound strongly. Both companies could experience clinical setbacks and regulatory delays.
The overall stock market will likely fall, and Pfizer and Moderna stocks may also fall. But the future for both of these coronavirus vaccine makers looks brighter than it has in recent days.
Should you invest $1,000 in Moderna right now?
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Adria Cimino has no position in any stocks mentioned. Keith Speights has a position at Pfizer. The Motley Fool has a position in and recommends Pfizer. The Motley Fool recommends her GSK and Moderna. The Motley Fool has a disclosure policy.
The bull market is here: Buy now 2 great stocks that are down more than 30%
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