“Never let a good crisis be wasted.”
When Winston Churchill made that memorable story, World War II was the crisis he had in mind. But emotion is still relevant today in the midst of our current crisis – the COVID-19 pandemic.
Many companies have risen to the challenge posed by the global health disaster. Investors in these companies earlier this year were satisfied with large returns. But these three pandemic stocks still have a lot of growth potential.
In terms of stock performance, Novavax (NASDAQ: NVAX) without a doubt the biggest winner to date among the coronavirus vaccine leaders. Biotech stocks have risen more than 2,700% year to date – and may be higher.
Currently, there are only 10 candidates for the COVID-19 vaccine in the final test, five of which are potential competitors in the US market. Novavax’s NVX-CoV2373 is one of them. The company has already embarked on a phase 3 clinical trial of the experimental vaccine in the UK and expects to start soon in the US
Novavax signed vaccine supply deals in the US and UK, and reached an agreement in principle with the Canadian government. If NVX-CoV2373 wins control approvals or permissions, the company stands to potentially earn billions of dollars.
But Novavax hopes not just ride the NVX-CoV2373. Biotech is moving forward with plans to file for FDA approval of a flu vaccine candidate, NanoFlu, which also has the potential to generate blockbuster sales. In addition, Novavax is investigating a combination of NVX-CoV2373 and NanoFlu as a COVID-19 / flu vaccine for post-pandemic use.
2. Teladoc Health
Many Americans used telehealth services for the first time during the COVID-19 pandemic. Two surveys conducted by Accenture and The Harris Poll suggests that telehealth will remain popular even after the pandemic. That is great news for Health in Teladoc (NYSE: TDOC).
Teladoc shares have risen 170% so far by 2020, driven by rising revenue and user base.
Expect more growth in the near future. Teladoc is in the middle of the acquisition Livongo Health (NASDAQ: LVGO), an agreement that will put it ahead of providing virtual care to help people manage chronic conditions. This transaction, which is expected to close later this year, should make Teladoc more attractive to customers seeking to lower their health care costs.
Teladoc management estimates that once Livongo services are considered in the equation, this addressable market will total $ 121 billion in the US alone. True, it does not and does not have a telehealth market in itself. However, it is the biggest player in telehealth services and will only expand the lead in having Livongo. Teladoc’s virtual care opportunities should make this stock a bigger success in the next decade than last year.
3. Abbott Labs
Most stocks will never grow in value as quickly as Novavax and Teladoc recently. However, if you are looking for a pandemic stock that can make you a lot of money in the long run, Abbott Laboratories (NYSE: ABT) should be right in your alley.
Abbott shares are up “only” 24% so far this year. However, the company appears to be ready to enter a new phase of strong growth. A major reason why Abbott emerged as a leading diagnostic review of COVID-19. This ensured FDA emergency use approval for six COVID-19 trials. The BinaxNOW COVID-19 Antigen Card diagnostic can reshape the coronavirus testing market by delivering results within 15 minutes for less than $ 5 per trial.
Of course, Abbott also markets many other products. In particular, the Freestyle Free continuous glucose monitoring device is a huge winner for diabetics worldwide, and sales are gaining thanks to the launch of a new version.
Another way that Abbott can help make investors richer is its dividend. Abbott has been paying a quarterly dividend since 1924 and increased payments annually for 48 consecutive years. But another walk in the dividend is likely towards the near future.