One thing that has been abundantly clear during the pandemic is that innovative companies are the biggest winners. SG Blocks (NASDAQ:SGBX) is looking to add its name to that list on Friday, as SGBX stock soars more than 55%.
What exactly is SG Blocks? The Brooklyn-based company specializes in all sorts of container-based structures. This means that it repurposes shipping containers into the building blocks of commercial and residential construction. One of its newest projects has Wall Street very excited, and investors are sending SGBX stock through the roof.
Through its new project, SG Blocks will partner with Grimshaw, a company that specializes in architecture and industrial design. Together they will repurpose standard shipping containers and make designated testing sites for the novel coronavirus. Most importantly, these testing sites will roll out at airports. Can you say XpresSpa (NASDAQ:XPSA)?
The two companies already have sealed the deal with the Los Angeles International Airport (LAX). Mobile testing clinics should debut there before the start of November 2020.
Investors are likely excited about SGBX stock because SG Blocks is also taking the next step. Not only is it delivering the testing sites with Grimshaw, but it is arranging for the testing infrastructure within each container. The LAX units will feature PCR tests from Osang Healthcare, a South Korean company. SG Blocks has also formed a joint venture with Clarity Labs — Clarity Mobile Venture — that will administer the tests each day for passengers and staff.
SGBX Stock Soars on Coronavirus Testing Plans
There are many key things for investors to note here, starting with the tests themselves. SG Blocks has selected a PCR test, a diagnostic test that searches for specific genetic material. Importantly, Osang Healthcare has received emergency-use authorization for its test from the U.S. Food and Drug Administration. Its test also delivers results within two hours, classifying it as a rapid test.
Investors also are likely to appreciate the similarities between it and XpresSpa because of what each company is hoping to accomplish. Air travel is certainly not back to pre-pandemic levels, but it has been recovering. Plus, those individuals who do need to fly will want to feel safe, as will the airport staff. Companies that can meet rebounding demand and ensure safety find themselves occupying an important and accelerating niche. With the winter holiday season just around the corner, this reality may become even more critical for SGBX stock.
Keep a close eye on SG Blocks. Risks are abundant thanks to its $20.5 million market capitalization, but it is clear that Wall Street likes what it is thinking.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.
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