Why Is GeoVax (GOVX) Stock Up 60% Today?

  • GeoVax (GOVX) has surged another 60% today, bringing its one-week move to nearly 400%.
  • This incredible run is built on the company's portfolio of vaccines, which includes a vaccine that has proven viability against monkeypox.
  • That said, questions around the sustainability of this move remain.
GOVX stock - Why Is GeoVax (GOVX) Stock Up 60% Today?

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The debate around monkeypox is heating up. And no matter where individuals stand on the spectrum, it’s clear that this painful, but rarely fatal disease is one experts are trying to get ahead of. Accordingly, today’s impressive move in GeoVax (NASDAQ:GOVX) may not be surprising. Indeed, GOVX stock has been running lately, surging another 60% in today’s session.

That’s because GeoVax is one of the few companies which produces a vaccine which targets monkeypox. As fellow InvestorPlace contributor Larry Ramer points out in a recent piece, GeoVax’s “vaccines have been validated and registered for [the] prevention of monkeypox virus infection.” For those concerned about this outbreak, that’s a great thing.

Indeed, it appears folks in San Francisco and New York are growing increasingly worried about monkeypox. So much so that yesterday, San Francisco and New York State became two regions to officially declare monkeypox a local health emergency. The goal is to strengthen these regions’ preparedness, as demand for vaccines surges.

Let’s dive into what investors should make of this news.

Is GOVX Stock a Buy Following Impressive Rally?

To be sure, there are a number of positive forward-looking catalysts at the back of GOVX stock. Should vaccine demand continue to remain high, there’s a significant potential market for GeoVax’s vaccines.

Additionally, with the company set to report its second quarter earnings next week, more in the way of fireworks could be on the table for this stock. Heading into the print, investors seem to be confident that positive commentary could take this stock even higher.

That said, it’s worth putting this rally in context. This stock is now a 5-bagger in the matter of a week. That’s an incredible short-term run, and if investors smell any inkling of selling pressure, it’s clear this stock could have a long way to drop. Accordingly, I think GOVX stock could be both the best momentum play, and the highest-risk stock, simultaneously, 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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