Why Moderna Stock Is Still A Strong Buy Now

For months, biotech companies and government officials talked about eventually needing a coronavirus booster vaccine. Now that the delta variant accounts for 98.8% of new U.S. infections, the possibility of wheeling out a booster is more real.

Moderna Inc. stock (Nasdaq: MRNA) got a huge pop since rolling out its initial vaccines. It's up 466% year over year.

Now, investors hope another round of vaccine distributions may fuel the company's bottom line and translate to similar gains. They could be right...

On Wednesday, the Biden administration announced it will begin offering booster shots the week of Sept. 20, after concluding that a third shot is needed to fight off decreasing immunity.

The booster shot plan only applies to the Pfizer-BioNTech and Moderna vaccines. It calls for Americans to get a booster shot eight months after receiving their second doses.

Although the Biden administration's plan has drawn mixed reactions, one thing is certain: A second wave is coming to vaccine stocks.

Here's why Moderna stock is one of the best stocks to buy now...

Why MRNA over Other Vaccine Stocks?

It's no secret Moderna struck gold with its first approved commercial product, the COVID-19 vaccine. The company was further along in its mRNA research than about every other biotech vaccine maker. And its focus on that enabled quick and effective vaccine distribution.

A short 63 days after the virus' genetic sequence was published, Moderna was on the shortlist of companies with a vaccine. Only Pfizer-BioNTech beat it by a week as the first company to go public with one.

Still, investors preferred Moderna. Its stock is up 466% year over year, compared to Pfizer's 36.6% bump and BioNTech's 415.88% increase.

This is important as the United States approaches a second wave of vaccine distribution. Moderna has sent vaccines internationally and through the United States. However, with news of the Biden administration's booster plan, investors will be revisiting vaccine stocks - and the public has already proven partial to MRNA.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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