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3 Second-Shot Covid Stocks to Buy


Covid stocks to buy - 3 Second-Shot Covid Stocks to Buy

Source: Shutterstock

Depending on where one looks these days, Wall Street may appear to have a case of the swine flu. But in a market made up of individual companies, some of yesterday’s biggest Covid stocks to buy are looking like second shot opportunities for bullish investors as we move toward 2022 and beyond.

While September lived up to some of its billing as a historically treacherous month for buying stocks, it was a modest lesson at best.

Following a monthly decline of 4.66% in the broad-based, large-cap S&P 500, the index was back setting new highs in under three weeks. And October? It’s 7.02% gain was anything but spooky or prescient.

And today and some three plus weeks later, the benchmark is roughly 4% above its August all-time-high and about 10% above the worst of September’s seasonal trick-turned-treat.

Yet in spite of that bullishness, many of last year’s market leaders which led Wall Street out of its own bearish Covid pandemic haven’t participated. Deserved? Maybe in some instances such as Peloton (NASDAQ:PTON). But in others? Not so much.

  • Amazon (NASDAQ:AMZN)
  • Teladoc (NYSE:TDOC)
  • Novavax (NASDAQ:NVAX)

Let’s look at three larger and diverse Covid stocks making names for themselves during the pandemic, which are shaping up both off and on the price chart for healthier-looking performances going forward.

Covid Stocks to Buy: Amazon (AMZN)

Amazon (AMZN) breaking out of elongated basing pattern for second shot entry
Source: Charts by TradingView

The first of our Covid stocks to buy are shares of Amazon. The tech giant didn’t need Covid for an introduction, it merely reinforced its importance in our collective lives.

Today, it’s time for a bit of Peter Lynch like appreciation of buying what you use to go along with all those essential and non-essential goods purchased, Amazon Web Services used, and streaming videos watched.

Technically, shares trading narrowly above an elongated base dating back to last September’s all-time-high of $3,552.25.

Following July’s failed breakout attempt, today’s second shot price action has a favorable bullishly oversold stochastics working in its favor.

Also promising, this Covid stock to buy has a smaller and constructive double-bottom acting as further support within the larger corrective base.

To give AMZN stock time to rally smartly and guard against downside risk, the May $3,700/$4,100 bull call spread is one leveraged and smart-looking vehicle to stay fully-protected in this Covid stock to buy.

Teladoc (TDOC)

Teladoc (TDOC) confirmed engulfing corrective bottom in place after finding support off 62% retracement levels
Source: Charts by TradingView

The next of our Covid stocks to buy is Teladoc. No doubt Covid sped up an inevitable trend in healthcare toward virtual solutions. And the market is going to continue growing briskly with or without Covid in the mix.

At the well-diversified frontlines of what’s estimated to be a $250 billion virtual care market is Teladoc. And, TDOC stock is offering a healthy Rx for investors to purchase shares.

Technically, this Covid stock’s monthly price chart has confirmed an engulfing candlestick corrective bottom formed around a pair of longer-term 62% retracement levels.

Backed by an oversold and bullishly-aligned stochastics, this year’s challenged performance in TDOC has the earmarks of a more common and treatable ailment known as a bear market.

For a healthier 2022, I’d prescribe the April $155/$190 bull call spread for this Covid stock

Covid Stocks to Buy: Novavax (NVAX)

Novavax (NVAX) monthly chart double bottoming in play off 62% Fibonacci support
Source: Charts by TradingView

The last of our Covid stocks to buy are shares of Novavax. NVAX stock is undoubtedly the pure play of the group with its more logistics-friendly NVX-CoV2373 vaccine being used in lesser developed areas globally.

As well, given how things are shaping up, annualized shots in the arms not unlike guarding against the flu, could become the norm. And that could be further good news for NVAX.

Today and while we’d rather put the virus behind us once and for all, a second shot, rather than a first stab or a booster, looks to be in order on the price chart for this Covid stock to buy.

Technically, a pair of positive vaccine reports tied to the Philippines and the European Medicines Agency sent NVAX stock up 10%.

Importantly, the price action has put shares back within a couple percent of this month’s buy signal through October’s hammer candlestick high of $192.40.

And with the candle completing a ten-month long correction, it’s potentially a powerful platform for buyers to work from.

For now, I’d suggest putting NVAX on the buy radar.

Then and should a second pattern confirmation signal in conjunction with a bullish stochastics crossover, the possibility for a third bullish wave to send this Covid stock to new highs in 2022 is one that’s worth owning.

On the date of publication, Chris Tyler 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.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

Article printed from InvestorPlace Media, https://investorplace.com/2021/11/3-second-shot-covid-stocks-to-buy/.

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