Investors of Moderna (NASDAQ: MRNA) stock could really use a shot in the arm – but they’re not getting one now, at least, as some traders would rather engage in political wrangling than focus on terrific bargains in the markets. I am bullish on Moderna stock as the company’s latest round of COVID-19 shots is gaining acceptance in multiple regions of the world.
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When investors and political pundits get hot under the collar, it’s easy to forget that Moderna is one of the biggest and most impactful drugmakers on the planet. Of course, Moderna supplies a lot more than just COVID-19 vaccines, but the pandemic isn’t over quite yet, and governments are turning to Moderna to supply potentially life-saving booster shots.
Actually, I should be cautious here because, as we’ll discuss in a moment, not everyone agrees that the pandemic isn’t over yet. The point still stands, though, that Moderna’s on a quest to make the world safer – and, we can assume, to rack up revenues both in the U.S. and abroad.
Moderna Stock Plummeted and Investors Need to Know Why
The American stock market was slightly up on Monday, yet Moderna stock plunged over 7%. Investors have every right to ask, what’s going on here? Was there an earnings miss? Did the Food and Drug Administration (FDA) reject one of Moderna’s drug applications?
Actually, it was none of the above. As it turns out, Moderna stock slumped on Monday because, the prior day, President Joseph Biden said in a 60 Minutes interview that the COVID-19 pandemic is “over.” It didn’t take long, as you might expect, for the ripple effects of controversy and heated debate to spread throughout TV and social media.
Before you start heatedly posting on your “socials,” though, be sure to read Biden’s full statement. What the President said was, “The pandemic is over. We still have a problem with COVID. We’re still doing a lotta work on it…but the pandemic is over.”
You’re certainly free to express your opinion on what Biden said. As an investor, however, it’s important to keep a clear head and consider the financial implications instead of the political angles here. The President didn’t say anything implying that Moderna’s COVID-19 vaccines won’t be distributed or used in the U.S. anymore.
The fact hasn’t changed that the FDA just authorized Moderna’s Omicron-targeting bivalent COVID-19 booster vaccine, mRNA-1273.222, for adults 18 years or older. Yet, the market decides to drop MRNA stock like a stone – and deliver you a potentially-spectacular dip-buy opportunity in the process. After all, how often do you see shares of a pharmaceutical giant with a trailing 12-month P/E ratio of 3.9x?
Moderna: Making Rapid Worldwide Progress with Latest Booster Shots
Moderna’s revenue doesn’t exclusively come from the U.S. The company’s market presence is truly global, and you’d be surprised to discover how many governments are giving green lights, more or less, to Moderna’s recently-developed COVID-19 booster shots.
Indeed, Moderna’s Omicron-fighting booster shots, and/or the bivalent versions that combat Omicron and other COVID-19 variants, are gaining acceptance across multiple world continents. For example, the UK’s Medicines and Healthcare products Regulatory Agency granted conditional authorization for the use of the Omicron-containing bivalent COVID-19 booster vaccine, mRNA-1273.214.
Meanwhile, Canada’s government plans to purchase an “additional 4.5 million doses of an Omicron-containing bivalent vaccine booster candidate from the Company, in addition to moving forward the scheduled delivery of 1.5 million doses of the bivalent vaccine candidate from 2023 to 2022,” according to a press release. Not long after that, Switzerland’s Swissmedic granted temporary authorization for one of Moderna’s Omicron booster jabs.
The list of similar approvals around the world continues with Australia, Canada, and Japan. So, while U.S. stock traders may be obsessed with what’s happening domestically, they should broaden their perspective and consider Moderna’s astounding progress on the global regulatory front.
Plus, investors should bear in mind that, whether the pandemic is actually “over” or not, COVID-19 is still a factor in people’s lives. In the U.S., there are reportedly 400 COVID-19-related deaths daily. Hence, the demand for Moderna’s shots should persist in America and elsewhere.
What is the Price Target for MRNA Stock?
Turning to Wall Street, MRNA is a Moderate Buy based on six Buys, five Holds, and one Sell rating. The average Moderna price target is $209.60, implying 63.9% upside potential.
Conclusion: Should You Consider Moderna Stock?
Instead of letting the controversy surrounding the President’s words consume you, it’s not a bad idea to take a deep breath and read his full statement concerning the COVID-19 pandemic. Then, take note of Moderna’s international presence and progress on the pandemic-fighting front before making a hasty investing decision. If you want to take advantage of the deep value in Moderna stock, feel free to buy a few shares while they still appear super cheap.
Sooner or later, the frothy debate should simmer down, and sensible traders will likely bring Moderna shares back to a higher, more reasonable price point.
