In case you are intending to broaden and diversify your sources of income, investing in Covid-19 vaccine stocks would be a great choice to consider. Today, companies like (NASDAQ: MRNA), Pfizer (NYSE: PFE), BioNtech (NASDAQ: BNTX), and AstraZeneca (NASDAQ: AZN) all have developed efficient Covid-19 vaccines and they are in the early stages of approval, the thing that makes them especially enticing to investors. The news got even better as last week the UK drug regulatory commission MHRA gave the authorization to Pfizer and BioNTech to distribute their Covid-19 mRNA vaccine for emergency use, and the first doses could be administered starting from this week.
Although the US Food and Drug Administration is still reviewing and analyzing Pfizer’s data, a Thursday meeting could end up with good decisions related to the emergency vaccine distribution by Friday morning. In the meantime, Moderna is more likely to get approval to distribute their vaccine at the December 19 meeting. This can explain why Moderna shares have risen 600% for the year, while Pfizer and AstraZeneca showed gains of approximately 8% and 9%, respectively.
However, according to some experts, despite the potentially positive developments, you should not invest in these pharmaceutical companies right now. The Certified financial planner Cathy Curtis, founder, and owner of Curtis Financial Planning in Oakland, California, told CNBC News in an article Monday, “I strongly believe that it is best for individual investors not to compete with traders on the hot stocks today since it’s so easy to buy at a high price and get burned.”
Moreover, since the optimism of the coming vaccines is already built into the price of the shares, Experts at Motley Fool believe that it may be too late to invest in Moderna. In addition to the risk of buying too high, you risk losing more money if you try to play the market and bet on pharma stocks continuing to rise.
The latest news says that there will be potential supply chain woes for vaccine distribution, and these companies appeal to cybercriminals, as they will put their hands on lots of money. Besides, the U.S. distribution still depends on FDA approval. And it is assumed that the vaccines will work with 90% efficacy expected with minimal or at least tolerable side effects.
For profitable and long-term investments, exchange-traded funds (ETFs) and mutual funds can provide more stability and less risk. You should know what others don’t know in order to successfully choosing individual stocks for short term gains. We already know where these pharmaceutical companies stand with their vaccines, but the big question is whether they will succeed or not.
Do not do everyday trading; instead, opting for strong companies that have exhibited steady and consistent growth is a good choice to make to enjoy stable, long-term, and profitable investments