Stocks were set to open lower today, but the market seems to have found its groove. Everything from tech stocks to vaccine stocks are moving higher. In particular, the latter group is catching the eyes of investors.
Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE) are helping lead the charge, up by roughly 8% and 4% respectively. However, BioNTech (NASDAQ:BNTX) and Novavax (NASDAQ:NVAX) are also higher on the day, with both stocks up more than 10% as of this writing.
Largely speaking, it has been a difficult year for these vaccine stocks. Due to its large and diverse portfolio, Pfizer has been able to keep stock losses at bay. Shares are currently down just 28% from the 52-week high. The same cannot be said for the others, however.
Moderna and BioNTech have suffered more drastic falls, both down 65% from their 52-week highs. Meanwhile, Novavax has been absolutely destroyed. Shares of NVAX stock are down more than 90% from the 52-week peak.
Here’s Why Vaccine Stocks Are Rallying Today
Pfizer kicked things off for vaccine stocks today by saying it will raise the price of its Covid-19 vaccine by four times. It plans to raise the price to between $110 and $130 per dose once the U.S. government’s purchase program ends.
While the vaccine is currently provided for free, Pfizer expects insurance to cover it going forward. The company believes the Covid-19 vaccine market will become “about the size of the flu shot market on an annual basis for adults.”
Given that BioNTech partnered with Pfizer, one can imagine how this will be a positive for BTNX stock as well.
In more positive news for vaccine stocks, Moderna also snagged an upgrade from SVB Securities analyst Mani Foroohar, who raised his MRNA stock to a “market perform” rating. The analyst increased his price target from $74 to $101 per share.
As for NVAX stock, the top underperformer of the group is rallying in sympathy with its vaccine peers.
On the date of publication, Bret Kenwell did not hold (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.
