Should You Invest in Vaccine Stocks Right Now?

Mandatory Credit: Photo by Valera Golovniov/SOPA Images/Shutterstock (11064090j)In this photo illustration a Moderna logo seen displayed on a smartphone next to pills, a syringe and an oximetre.
Valera Golovniov/SOPA Images/Shutterstock / Valera Golovniov/SOPA Images/Shutterstock

If you’re looking to expand or diversify your portfolio, you may be eyeing vaccine stocks closely. Moderna (NASDAQ: MRNA), Pfizer (NYSE: PFE), BioNtech (NASDAQ: BNTX) and AstraZeneca (NASDAQ: AZN) all have Covid-19 vaccines in the early stages of approval, making them especially enticing to investors. The news got even better last week, when the UK drug regulatory commission MHRA authorized Pfizer and BioNTech to distribute their Covid-19 mRNA vaccine for emergency use and the first doses could be administered this week.

Rollercoaster Ride: Markets React as Coronavirus Vaccines Get Ready to Ship

In the U.S., the Food and Drug Administration is still reviewing Pfizer’s data, but a meeting on Thursday could yield answers on emergency vaccine distribution by Friday morning. Meanwhile, Moderna could get approval to distribute their vaccine at the December 17 meeting. Moderna shares have risen 600% for the year, while Pfizer and AstraZeneca showed gains of approximately 8% and 9%, respectively.

With all these potentially positive developments, should you invest in these pharmaceutical companies right now? Probably not, say some experts.

Get Started: 6 Telehealth Stocks to Invest In Right Now

“I strongly believe that for individual investors, it’s best not to try and compete with traders on the hot stocks of the moment because it’s so easy to buy at too high a price and get burned,” certified financial planner Cathy Curtis, founder and owner of Curtis Financial Planning in Oakland, California, told CNBC News in an article Monday.

Save for Your Future
Sponsors of

Experts at Motley Fool also observe that it may be too late to invest in Moderna, since the optimism of the coming vaccines is already built into the price of the shares. In addition to the risk of buying too high, there’s a lot that can go wrong if you try to play the market and bet on big pharma stocks continuing to rise.

News outlets are already forecasting potential supply chain woes for vaccine distribution, and cybercriminals view these companies as hot targets. Plus, U.S. distribution still hinges on FDA approval. And all of this assumes the vaccines will work with the 90% efficacy expected with minimal – or at least tolerable – side effects.

Learn More: IBM Reveals Cyber Criminals Targeting COVID Vaccine Supply Chain

For long-term investments, exchange traded funds (ETFs) and mutual funds provide more stability and less risk. Successfully choosing individual stocks for short term gains requires knowing what others don’t know. We already know where these pharmaceutical companies stand with their vaccines – but the only question is whether or not they will succeed, and it’s a big question.

If you’re looking for stable, long-term, profitable investments, leave the day trading to the professional day traders and focus on strong companies that have exhibited steady and consistent growth. Better yet, bank on the stability of ETFs and mutual funds for more consistent returns.

More From GOBankingRates

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

Should You Invest in Vaccine Stocks Right Now?
Close popup

Win $500 – and Start the New Year Right!

When you sign-up to receive bi-weekly email updates from GOBankingRates, you’ll automatically be entered for a chance to win our $500 #BestBanksBestYou sweepstakes. Sign up now!

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For official contest rules, please go to: gobankingrates.com/best-banks/official-rules/