Ebola stocks are on many investors’ minds lately as the first diagnosed case of the virus has been confirmed.
It might sound like a vulture mentality to profit from Ebola stocks as America struggles with fears of an Ebola outbreak — and, of course, real people fight for their lives against the disease.
But many healthcare trends have resulted in big upswings for investors, and the risk of an Ebola outbreak is noteworthy as a result.
There were marijuana stocks Hemp Inc. (HEMP), Cannabis Science (CBIS) and Medical Marijuana (MJNA) in the wake of recent legislation and medical dispensaries opening up across America. There were weight-loss drug companies Orexigen (OREX) and Vivus (VVUS) that were hopeful of obesity cures.
And now, Ebola stocks are the latest trend.
5 Ebola Stocks to Buy
So how can you invest in the way America will fight back against the risk of an Ebola outbreak? Here are a few Ebola stocks to consider — but keep in mind that many of these players are very small, risky investments that are thinly traded. InvestorPlace is normally reluctant to cover stocks like this because of the high likelihood of manipulation and volatility … but given the interest in Ebola stock investments, it’s worth pointing out the larger and more established players in the space.
All of these Ebola stocks trade on the Nasdaq and have decent trading volume — but still, protect yourself with limit orders and/or stop-losses if you consider investing.
And as always, do your own research on these Ebola stocks before any trade is made:
Tekmira Pharmaceuticals (TKMR): Tekmira could be the most established ebola stock out there, since its TKM-Ebola drug won verbal fast-track approval from the FDA in August. The company is about $470 million in size, too. Still, expect volatility in this Ebola stock; TKMR has been swinging by double digits on recent Ebola outbreak news.
BioCryst Pharmacuticals (BCRX): BCRX also is an established pharmaceutical research company, valued at about $720 million. BCRX is researching an Ebola drug of its own and racing to bring it to market, making this a speculative Ebola stock, but one worth watching.
Sarepta Therapeutics (SRPT): Sarepta is researching its own Ebola treatment in collaboration with the U.S. military. Again, this is an established biotech player with SRPT valued at almost $900 million, but expect big volatility here as with the rest of these Ebola stocks.
NewLink Genetics (NLNK): NLNK recently began clinical trials of its Ebola treatment, but like the other stocks on this list, it has a good chance of being fast tracked if studies prove encouraging thanks to the very real risks of outbreak. This is another established player on the Nasdaq, with a nearly $650 million market cap.
Lakeland Industries (LAKE): Lakeland specializes in safety gear, including the disposable contamination suits that would be used by medical professionals in treating an Ebola outbreak. The stock is less than $50 million in market cap, however, so expect big swings and don’t buy your shares all at once because of thin trading volume. It’s not as sexy as the drugs used to treat Ebola, but the hazmat gear from Lakeland could be an interesting play on the risk of an Ebola outbreak.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at email@example.com or follow him on Twitter via @JeffReevesIP.