Moderna shares continued to hit all-time highs in late July on several bullish vaccine news and, as they joined the S&P 500, replacing AstraZeneca (AZN) purchase of Alexion Pharmaceuticals.
Recently, a committee of experts recommended that the European Union allow Modern‘s (MRNA) Covid vaccine for emergency use in adolescents 12 to 17 years of age. In addition, Moderna obtained supply agreements with officials in Taiwan, Japan and Argentina.
The company also recently dosed the first participant in a study for its seasonal flu vaccine and its Covid vaccine obtained emergency clearance in India. In recent tests, Moderna faced the blood of people vaccinated against Covid variants. The blood produced antibodies against a number of variants, including the Delta variant that was first found in India.
In late June, the Food and Drug Administration warned against an increased risk of cardiac inflammation in recipients of Moderna’s messenger RNA vaccines. Pfizer (PFE) /BioNTech (BNTX). European officials also added a warning to the label detailing the possible side effect.
Moderna has asked regulators in the US, Canada and Switzerland to authorize its Covid vaccine for adolescents. You are also actively submitting information to the Food and Drug Administration in hopes of obtaining full approval.
So overall, Moderna’s stock is a buy today?
A fundamental look at Moderna’s actions
The so-called spike proteins cover the type of coronavirus that causes Covid-19. Moderna’s vaccine contains mRNA that tells the body to produce a structure similar to the spike protein. The idea is that this will cause the immune system to create antibodies and T cells that fight disease.
Moderna has just reported its first quarter of profitability. In the first quarter, Moderna earned $ 2.84 per share, minus some items, on $ 1.94 billion in revenue. The latest issue included $ 1.73 billion in sales of its Covid vaccine. Earnings beat forecasts, but sales lagged.
Revenue growth was massive and earnings are bullish, although they are still early innings. CAN SLIM inverters they are encouraged to look for stocks with 20% -25% recent quarterly revenue and profit growth. The higher the growth, the better.
In the second quarter, analysts surveyed by FactSet expect Moderna to earn $ 5.96 a share on $ 4.21 billion in sales. Profits would change from the previous year’s losses and sales would grow by a four-digit percentage.
Moderna’s share has a Composite classification out of 79 out of 99 best possible. The composite rating is a measure from 1 to 99 of the fundamental and key technical measures of a stock. So mRNA stocks barely rank in the top quartile of all stocks on those metrics.
What does 2020 say about mRNA stocks?
Moderna’s shares went public at 23 in late 2018.
In 2019, biotech stocks were up about 38%. In 2020, however, stocks soared more than 434%.
Still, the bullish action in Moderna shares does not extend to fundamentals. In 2020, Moderna reported a loss of $ 1.96 per share on $ 803 million in sales. Sales soared, but losses deepened.
In 2021, analysts expect Moderna to earn $ 26.17 a share on $ 18.77 billion in sales. Profits would vary from losses a year ago and sales would skyrocket by a four-digit percentage.
Moderna Stock: Technical Analysis
Moderna’s shares rose above a profit-taking zone after breaking a cup base with handle June 30. Investors are encouraged to make a profit when a stock is between 20% and 25% above their entry. The stocks are now well beyond their profit-making zone and are not currently forming a new base.
Stocks also have a perfect Relative strength classification 99 out of 99 best possible. The RS rating is a 1-99 measure of a stock’s 12-month performance. This puts Moderna shares in the top 1% of all shares on that metric.
But the mRNA stock has a poor EPS rating 33, an improvement, but still reflects years of losses per share.
Keep tabs on IBD Digital for more information on stock ratings.
Covid vaccine boosts stocks
At the end of July, the EMA’s Committee for Medicinal Products for Human Use issued a positive opinion on Moderna’s Covid vaccine for adolescents.
Moderna also signed a supply agreement with Taiwan for 20 million doses of its Covid vaccine and a possible variant-specific booster vaccine in 2022, and 15 million doses in 2023. It will also partner with Takeda Pharmaceutical (SO) and Japan to supply an additional 50 million doses of its original injection and potential booster in 2022.
Stockpiles of mRNA also spiked earlier in the month after it announced a supply deal with Argentina for 20 million doses of its Covid vaccine or its booster shot. The latter has not been authorized. But delivery is expected in the first quarter.
In a final analysis, Moderna’s Covid vaccine was 94.1% effective. Earlier this year, the Centers for Disease Control and Prevention said a test of U.S. healthcare workers showed that Pfizer and Moderna vaccines are 80% effective after the first dose. . The second dose increases the effectiveness to 90%.
In an early phase test, the potential Covid booster injection produced neutralizing antibodies against known variants such as Beta, Kappa, Delta, and Eta, as well as variants first identified in Uganda and Angola.
Earlier this year, the FDA allowed Moderna’s vaccine to be stored for 24 hours at room temperature. The agency believes that a perforated vial can be worn for up to 12 hours, compared to the previous six-hour guidance. Workers can also receive 15 doses from two vials, up from 11 previously.
Moderna has also announced a long-term supply agreement for the injection with a coalition of low-income countries. It will deliver 34 million doses this year and 466 million doses in 2022.
So is Moderna Stock a buy right now?
Moderna shares are not a purchase at this time. The stock is now extending bullish from its buy zone and recently broke out of a profit-taking zone. CAN SLIM investors are advised to buy a share when they have liquidated a point of purchase and is within 5% chase zone.
The company has achieved strong sales growth. Analysts expect that to continue in the future. Also, they see solid profitability in the near future. But analysts are calling for both metrics to slow down in 2022.
The stocks have a strong RS rating, but the company’s composite rating is not among the highest stocks.
It will be important to watch Moderna’s efforts to distribute its coronavirus vaccine. That could help fuel both MRNA’s stock and the biotech company’s finances.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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