The proliferation of a less fatal strain of Covid hurt prospects for both Pfizer (PFE) and especially Moderna (MRNA). Investors sold shares in those companies, anticipating revenue growth from Covid vaccines would weaken.
Which company is a better buy?
Moderna attracted bears who hold an 8.9% short interest. In the third quarter, the firm reported revenue growing by 1.6% Y/Y to $1.86 billion. However, GAAP EPS was three cents. Cash levels declined to 49.2 billion, down from $10.8 billion from the prior quarter.
Moderna is a good value stock if the company’s pipeline for cancer vaccine progresses.
Pfizer is more diversified than Moderna. Shares broke down from the $28 - $30 range after markets worried about the RFK Jr. appointment.
On November 20, 2024, Pfizer named its head of oncology, Chris Boshoff, to lead the company’s research and development efforts. Pfizer needs its R&D pipeline to continue to move forward. It relies too heavily on multi-billion dollar acquisitions to enrich its R&D assets. Unfortunately, overpaying for companies results in goodwill write-downs in the long run. This does not benefit investors.
Your Takeaway
Moderna is a good investment for the vaccine market, while Pfizer is a diversified firm trading at a discount. PFE stock is a safer investment, thanks to its dividend yield of around 6.5%. The stock has a history of bouncing back to $30 - $31.50 before falling. Traders could take advantage by selling the stock whenever it rallies.
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