Today, investors in a range of vaccine stocks have seen serious declines. Shares of BioNTech (NASDAQ:BNTX), CureVac (NASDAQ:CVAC) and Novavax (NASDAQ:NVAX) all saw marked declines this morning. Currently, both BioNTech and Novavax are down roughly 10%. CureVac has gained back this morning’s losses and is now trading in the green.
That said, these high-profile vaccine makers have been making headlines for some time. Share prices across this sector have soared as investors bank on future booster-shot rollouts and continued vaccination campaigns. Year to date, BioNTech and Novavax have seen triple-digit gains. CureVac hasn’t seen the upside its peers have, though this is a stock many investors watch as a key player in this sector.
With volatility reigning supreme, cautious investors may be on the sidelines with these names. That said, those who have held through the volatility in the past have done very well. The question from here is whether positive momentum can be maintained.
Let’s dive into what some of the experts are watching with these stocks.
Key News Driving Volatility in Vaccine Stocks Today
Numerous reports highlight the momentum-driven rallies behind each of these vaccine makers. Indeed, vaccine stocks have been some of the best performers this year, as investors look high and low for growth. Given the relatively risk-off appetite in the markets right now, vaccine stocks are viewed as one of the bright points in today’s market.
Early clinical trial data has been submitted for booster-shot approvals in the U.S. The hope many investors have for these vaccine stocks is that a booster shot for the general population will be granted in short order. However, U.S. health agencies have only approved booster shots for immunocompromised individuals in yesterday’s update. This seemingly provided a bit of a letdown for these vaccine stocks today. Indeed, a tremendous amount of growth is baked into the valuations of these companies right now. Until a booster shot for the general population is announced, investors appear to be willing to brace themselves for downside volatility right now.
Additionally, CureVac’s outperformance relative to its peers seems to be tied to a positive trial using monkeys for the company’s vaccine. This trial showed improved results over previous attempts. Accordingly, investors appear to be gravitating toward vaccine stocks with more promising outlooks presently.
In other news, Novavax has announced a small executive shuffle. This move has not done much to stop the bleeding, with NVAX stock down around 10% currently.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
