SIGA Technologies (NASDAQ:SIGA) stock is seeing double-digit gains once again, as investors grow increasingly bullish on biotech firms with vaccines combating monkeypox. This enthusiasm started yesterday, after the World Health Organization (WHO) declared the monkeypox outbreak a global health emergency.

SIGA is unique in that it produces a vaccine which handles monkeypox, along with smallpox. With cases in the U.S. surging to more than 3,000, the general public is becoming concerned. As a result, SIGA has been gaining attention.

Let’s dive into what investors should make of this multi-day rally.

How High Can SIGA Stock Go?

The catalyst behind SIGA’s rally is easy to understand. With one pandemic ongoing, adding an additional health emergency on top could be catastrophic. Investors looking to get out ahead are looking for ways to gain upside to what could be a very negative catalyst for the market.

It’s unclear right now whether the monkeypox outbreak will turn out to be as dangerous for the market and the global economy as Covid-19. Early indications are that even a widespread outbreak of monkeypox won’t involve the same sort of pandemic restrictions.

However, we all saw what happened when Covid-19 took control of the economy. As a portfolio hedge, perhaps SIGA stock offers peace of mind for investors. For many, that’s reason enough to buy a small position right now.

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.