What 2021 Can Teach Us About Investing in 2022

Hi. Brian Hunt here, CEO of InvestorPlace.

As I write, the Omicron variant of the coronavirus has rattled markets. And right now, there are a lot more questions than answers about what’s going to happen.

This is just another twist after two years that have been filled with surprises.

Last year, we faced COVID-19, worldwide economic slowdowns, and one of the biggest, fastest declines in market history. As 2021 started, the world seemed ready to get back to normal, and then the Delta variant reared its ugly head. In the wake of this uncertainty, many investors ran for the hills, triggering severe bouts of volatility in the stock market.

But it’s important to remember that after its initial plunge in 2020, the market recovered to reach all-time highs. Investors who couldn’t stomach the volatility and stepped out of the stock market missed out on a massive rebound.

Louis, Luke, and Eric, on the other hand, stayed calm and watched for opportunities. Because the reality is that you can be successful no matter which way the market turns, you just need to find the right stocks.

Here’s what we mean…

  • In 2021 alone, Louis has booked some big winners, like 155% from Arbor Realty Trust… 123% from Safehold, Inc… and 396% from AppFolio.
  • In 2020, Luke was named the #1 stock picker by TipRanks. In just the matter of a few short years, Luke has managed to uncover 17 stocks that have soared more than 1,000%.
  • And this year Eric closed another 10X winner in a trade on Freeport-McMoRan. Known as “Mr. 1,000%,” Eric now has forty-four 1,000%+ winners to his credit.

Now, the three analysts take very different approaches to investing; Luke and Eric are more of “top down” or “macro” investors, identifying the big trends shaping the economy and dive down into company specifics to find the winners. Louis takes more of a “bottom up” approach, focusing on the detailed numbers that signal whether a company’s stock is about to take off, though he certainly pays attention to the big picture as well.

As you can see, both strategies work.

And they’re all on the same page about the opportunities to grow wealth in 2022.

So, on Tuesday, December 7, at 7:00 p.m. EST, Louis, Luke, and Eric are coming together for the Early Warning Summit.

Click here to reserve your spot for this event now!

During this event, the three analysts will reveal the trends that will have the largest and most immediate impact on the coming year… and how to take advantage of them.

It’s an event like no other, and we can’t wait for you to see what’s in store.

Sign up for the Summit today – because this is an event you won’t want to miss.

Regards,

Brian Hunt

P.S. On Tuesday, December 7, at 7:00 p.m. EST during the Early Warning Summit, Louis, Eric, and Luke will reveal four stock picks that could soar in 2022. All three investing legends see major events rocking the markets in the next year, and these four stocks are the best to own. Click here to save your spot.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

 

 

Have the Markets Overreacted to Omicron?

The latest COVID-19 variant has sent markets on a roller-coaster ride the past couple days as researchers, health officials and drug makers scramble to determine how dangerous it will be.

A couple weeks after scientists in South Africa first identified it, the World Health Organization (WHO) on Friday dubbed the new variant “omicron,” from the 15th letter of the Greek alphabet, saying it is a “variant of concern.”

Scientists who sequenced the variant’s genome discovered more than 50 mutations from the original coronavirus. Some of these have the potential to make the virus more transmissible or the immune response (including those generated from vaccines) less effective, though the scientific community is still in the early stages of learning about the virus. That means there are a lot of unknowns regarding this new strain’s potential impact remain.

In response, governments across the globe, including Israel, the U.K. and France, immediately began a travel ban from southern Africa.

Investors on Wall Street panicked Friday, sending both the S&P 500 and the Dow more than 2% lower on the short trading day.

Airline stocks took a hit, oil prices pulled back dramatically and the yield on the 10-year Treasury dropped to 1.48% from 1.64% two days earlier.

But clearer heads prevailed on Monday, with the Dow, S&P 500 and NASDAQ all up 0.9%, 1.3% and 2.6%, respectively.

The major indexes were back down today following comments from Moderna, Inc. (MRNA) CEO Stephane Bancel, who said vaccines may be less effective against the variant. Bancel said it could take months to release a vaccine that specifically targets omicron. Early tests also show Regeneron Pharmaceuticals Inc.’s COVID-19 antibody drug cocktail that specifically targets the virus’s spike protein is less effective against the variant and may need modification.

Still, researchers have indicated other drugs are more likely to stand up against the variant.

Interestingly, Dr. Angelique Coetzee, chair of the South African Medical Association and among the first doctors who spotted the new variant among her patients, has said the patients she’s treated with omicron had “extremely mild” symptoms so far.

Now, these market swings are exasperating, but I don’t think investors should worry too much. We still have to wait for more data to see how our current crop of vaccines and treatments will hold up against the new variant. It’s normal to see markets bounce and then go back and try to re-test the lows amidst such uncertainty.

I prefer to let the dust settle and not knee-jerk react to the headlines.

Meanwhile, the “goldilocks” environment of ultra-low interest rates and strong earnings continues, even if investors are starting to chase fewer, fundamentally superior stocks.

When it comes to vaccines, the pharmaceutical companies have moved quickly to test if the current crop of vaccines and boosters will be effective against the omicron variant.

Pfizer Inc. (PFE) and BioNTech SE (BNTX) said they’re awaiting the results of an investigation into how the variant may adapt to the COVID-19 vaccine in less than two weeks from now.

If a change needs to be made, the companies can do so within about six weeks and begin sending out new vaccines within 100 days.

Pfizer CEO Albert Bourla also recently told CNBC the company’s COVID-19 treatment, Paxlovid, which has yet to receive approval from the Food and Drug Administration, was… “designed with the fact that most mutations are coming in the spikes. So that gives me very high level of confidence that the treatment will not be affected, our oral treatment will not be affected by this virus.”

Johnson & Johnson (JNJ) said it’s started testing its vaccine against omicron, while AstraZeneca PLC (AZN) has begun researching the variant in Botswana and Eswantini and said its vaccine platform can adjust quickly to new mutations.

Moderna is testing three booster candidates against the variant and plans on creating a booster specific to omicron.

So there’s clearly significant profit potential for several biotech companies working on COVID-19 vaccines and medications. But as I have said before, I believe BioNTech stands to be one of the biggest winners in the months ahead when you consider its fundamentals.

Picking the Crème de la Crème

Case in point: For the company’s third quarter, reported on November 9, BioNTech and Pfizer achieved several milestones regarding their COVID-19 vaccine. The vaccine was granted full approval by the FDA in August for individuals 16 years old and older, and a booster was granted emergency use authorization for high-risk individuals and those 65 years old and older. The vaccine also recently received emergency use authorization for children between the ages of five and 11. BioNTech noted that more than two billion doses of the vaccine have now been delivered.

Given the success of its vaccine and strong demand for it, BioNTech achieved blowout results for its third quarter in fiscal year 2021. Third-quarter revenue surged to $7.1 billion, up from $79.7 million in the same quarter a year ago, and topping the consensus estimate for $5.8 billion by 21.5%. The company also reported earnings of $14.31 per share, up a spectacular 385.7% from a year prior and beating analysts estimates for $12.2 per share by 17.4%.

Of course, the company isn’t a one-trick pony, which is another reason why I like the stock. The company is also working on cancer treatments. It’s currently advanced 15 oncology product candidates in 18 ongoing clinical trials.

BioNTech is also working on a malaria vaccine for the African continent and anticipates starting a clinical trial by the end of 2022.

As you can see below, BioNTech is a “Strong Buy” in my Portfolio Grader, with a Total Grade of “A,” and a Quantitative Grade of “A,” signaling institutional buying pressure under the stock.

The stock has increased over 67% since it started climbing November 5, ahead of its third-quarter announcements. So far this year, the stock has rocketed an incredible 345%.

And I’m pleased to say that my Accelerated Profits subscribers have been along for the ride, as my Project Mastermind system flagged BNTX back in April 2021, when the stock was trading around $156.

The bottom line is that BioNTech has the superior fundamentals to keep trekking higher while the world combats COVID-19 and beyond.

But it’s far from the only fundamentally superior stock on my radar right now. My Project Mastermind system found another fundamentally superior stock that is well-positioned to benefit from its biotech offerings. I released the name and buy advice on Monday. If you missed it, simply sign up here and I’ll give you all the details.

Sincerely,

Signed:
Louis Navellier

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

BioNTech SE (BNTX)

 

Are Vaccine Stocks A Buy on Earnings?

Well, it looks like the majority of the world population is now vaccinated for COVID-19. 51% of the global population are at least partially vaccinated for a total of 3.91 billion people with at least with one dose.

But the U.S., as I talked about last week, has fallen behind on a global scale. 58.4% of the U.S. is fully vaccinated and 67.3% with at least one dose, placing 17th on the world scale.

The good news is that Pfizer Inc.’s (PFE) COVID-19 vaccine has now been approved for use by the Centers for Disease Control and Prevention (CDC) for children aged five to eleven years old in the U.S., which will hopefully boost vaccination numbers.

Now that the COVID-19 vaccine is available to virtually everyone in the country, the biotech companies working on the vaccine behind the scenes are going to have some serious profit potential, as was evident in Pfizer’s and Moderna Inc.’s (MRNA) most-recent earnings results this week.

So, let’s take a quick look at their earnings results.

Pfizer (PFE): Earnings Reported on Tuesday, November 2

Pfizer is one of the world’s largest pharmaceutical companies and develops a variety of medicines and vaccines, including one for COVID-19. The mRNA vaccine from Pfizer and BioNTech SE (BNTX) is currently the most administered in the U.S. with 241 million doses.

For its third quarter, PFE reported better-than-expected adjusted earnings of $1.34 per share, which topped analysts’ expectations for adjusted earnings of $1.09 by 23.5%. Earnings are up 86% year-over-year from the $0.72 earned in the third quarter of 2020. Third-quarter revenue of $24.09 billion slightly beat estimates calling for $22.81 billion, topping previous year’s quarter by 98.62%.

The company also raised full-year 2021 sales forecasts for the vaccine by 7.5% to $36 billion. The vaccine brought in sales of $13 billion to the company for the third quarter, which topped estimates of $10.88 billion. The company is also on track to deliver 2.3 billion of the COVID-19 vaccines out of the approximate 3 billion they plan to produce this year.

It was a wild week for Pfizer shares. They initially jumped more than 5% on the strong earnings results but then took a turn on Wednesday, falling 3% after it was announced that the Merck & Co., Inc. (MRK) COVID-19 antiviral pill was approved for widespread use in the U.K. The U.S. Food and Drug Administration (FDA) has not approved the Merck oral treatment yet.

But then on Friday, the stock surged more than 10% after Pfizer announced that it also has a COVID-19 pill that decreases the likelihood of COVID-related deaths or hospitalizations by 89% in a clinical trial.

Moderna Inc. (MRNA): Reported on Thursday, November 4

As you know, Moderna has its own COVID-19 vaccine, which is second in distribution with 154 million doses. The vaccine has significantly contributed to the company’s top and bottom lines, aiding the stock’s nearly 234% increase this year, though the biotech company still reported weaker-than-expected earnings and revenue in its latest quarter.

For the third quarter, MRNA reported earnings per share of $7.70 on $4.97 billion in revenue. Analysts were expecting earnings of $9.42 on revenue of $6.29 billion, so the company missed earnings estimates by 18.3% and revenue estimates by 20.9%.

The company also announced that it aims that to deliver between 700 million and 800 million more doses, instead of the 800 million to one billion that was expected. Sales for the COVID-19 vaccine are expected to come in between $15 billion and $18 billion instead of the previous guidance for $20 billion, which pales in comparison to PFE’s expected $36 billion this year.

However, the company remains optimistic. CEO Stephane Bancel stated, “We are humbled to have helped hundreds of millions of people around the world with our COVID-19 vaccine and yet we know our work is not done.”

Unfortunately, this optimism wasn’t enough to help the stock. It fell 20% on earnings and then more than 24% on Friday following the announcement of Pfizer’s COVID pill.

My Vaccine Stock Pick

Despite their earnings, these companies are not my favorite biotech stocks. I like BioNTech SE (BNTX), which is working with Pfizer on the COVID-19 vaccine

BioNTech SE (BNTX) is my pick for the biotech industry right now for several reasons. Not only has BNTX been working with PFE on the current COVID-19 vaccine, but it seems to be a favorite of the Biden administration.

Now, the stock was down 22% this week on the Pfizer COVID-19 pill news; however, I’m not too worried. As of now, vaccinations are still ultimately more effective at preventing COVID hospitalizations and spread of the virus, with about 95% efficacy. BioNTech is also working with Pfizer to test variant-specific vaccines, which can be designed in a matter of days.

The companies are also preparing testing procedures like preclinical research, manufacturing, clinical testing, and regulatory submission to get a head start should a variant-specific vaccine be needed. In August, the companies started a trial of a multivariant vaccine targeting both the Delta and Alpha variants, though they have no plans to release it to the public.

But what sets BNTX apart from PFE and MRNA is its incredible performance and its growth potential. For example, take a look and see how these companies have performed year-to-date:

As you can see, BioNTech has soared 203% over the past year with Moderna closest behind at 131%. Pfizer has climbed just 36%, though it still beats out the S&P 500’s 31% gain during the same time period.

My Accelerated Profits subscribers have been along for the ride, as my Project Mastermind system flagged BNTX back in April 2021, when the stock was trading around $156.

I should add that BNTX is not a one-trick pony and has several other projects in the works other than the COVID-19 vaccine. The company is also working on cancer treatments. In fact, it’s currently advanced 15 oncology product candidates in 18 ongoing clinical trials. BioNTech is also working on a malaria vaccine for the African continent and anticipates starting a clinical trial by the end of 2022.

Now, BioNTech SE will lay out its cards next Tuesday, November 9, when it reports its third-quarter earnings results. Currently, analysts expect earnings of $2.27 on revenue of $5.93 billion. The stock has a solid history of earnings surprises, so a fourth-straight earnings surprise could be in the cards.

The bottom line is that BNTX has the superior fundamentals to keep trekking higher while the world combats COVID-19 and beyond.

But it’s far from the only fundamentally superior stock on my radar right now. My Project Mastermind system found another fundamentally superior stock that is well-positioned to benefit from the trucking shortage in the U.S.. I released the name and buy advice on Thursday. If you missed it, simply sign up here and I’ll give you all the details.

Sincerely,

Signed:
Louis Navellier

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

BioNTech SE (BNTX)

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