Target Deep Value and Give Moderna a Shot

  • Moderna (MRNA) appears to be in oversold territory after a prolonged share-price drawdown.
  • MRNA stock could be due for a rebound in light of encouraging news for Moderna.
  • Investors should consider holding a few MRNA shares in hopes of a reversal.
Moderna (MRNA) research Coronavirus (Covid 19) vaccine. Row of vaccine bottles with blurred Moderna company logo on background.

Source: Carlos l Vives /

American pharmaceutical giant Moderna (NASDAQ:MRNA) was once a superstar on Wall Street, but now the company is disfavored among investors. That’s perfectly fine, as value-focused traders can grab MRNA stock at a discount.

Given the way Moderna is being treated by the investing community, you might think there’s no need for Covid-19 vaccines anymore. However, presidential chief medical adviser Anthony Fauci has made it clear that the Covid-19 pandemic isn’t over.

“If you look at the global situation, there’s no doubt this pandemic is still ongoing … I don’t believe — and I have spoken about this widely — we’re not going to eradicate this virus,” Fauci warned. Thus, it’s reasonable to conclude there will still be a need for Moderna’s Covid-19 vaccines.

As a result, enterprising investors might want to hold onto their Moderna shares or even add to their positions. As we’ll see, it is still among the most proactive vaccine makers in the global battle against Covid-19.

MRNA Moderna $142.24

What’s Happening with MRNA Stock?

How high could MRNA stock go when Moderna is favored by Wall Street again? It’s hard to predict exact price moves, but there’s plenty of room for upside here.

Impressively, the Moderna share price managed to reach $497.49 in September of last year. In hindsight, it’s evident investors weren’t yet willing to pay $500 per share.

On the other hand, the subsequent retracement looks overdone. Just recently, MRNA stock was trading around $140, which represents a sizable discount.

Value seekers ought to take notice, as Moderna’s trailing 12-month price-to-earnings (P/E) ratio is ultra-low at 4.8x. In other words, the company is profitable, yet the share price doesn’t seem to reflect its true value.

Let’s not forget Moderna can still make headway in combating the global Covid-19 pandemic, which includes multiple variant strains. There’s still work to be done, and it is a pharmaceutical mainstay that the medical community can count on now.

Combating Covid-19 Everywhere

Waging the battle against Covid-19 means continuing to innovate and push the boundaries of vaccine science. This is what Moderna has been doing and will, no doubt, continue to do throughout 2022.

In a prominent example of this, Moderna recently published an update on the company’s first bivalent booster vaccine candidate, known as mRNA-1273.211. According to the National Cancer Institute, a bivalent vaccine is one that “works by stimulating an immune response against two different antigens, such as two different viruses or other microorganisms.”

In the case of mRNA-1273.211, Moderna is targeting all Covid-19 “variants of concern.” As it turns out, its new vaccine demonstrated superiority against the beta, delta and omicron variants of Covid-19 one month after administration. Moreover, the superiority continued six months after administration for both the beta and omicron variants it targeted.

Meanwhile, Moderna is seeking to address the Covid-19 vaccination needs of a very young demographic. Specifically, the company filed a request to the U.S. Food and Drug Administration (FDA) for an emergency use authorization (EUA) for its original Covid-19 vaccine to be used in children aged six months to less than six years.

This proposed vaccination regimen would involve two shots. Moderna further reported the company is studying vaccine booster doses for all pediatric cohorts.

What You Can Do Now With MRNA Stock

As Fauci warned, the Covid-19 pandemic isn’t over yet. There will still be a need for the vaccine products that Moderna currently provides.

Meanwhile, MRNA stock is trading at an ultra-low valuation. Bargain hunters can choose to own a few Moderna shares as the company continues to wage battle against Covid-19 while offering good value to the shareholders.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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