The stock market has experienced an unabated rally so far this year, fueled by a torrent of monetary and fiscal stimulus and strong corporate earnings. The S&P 500 has climbed 20%, registering seven straight months of gains and more than…
50 highs along the way.
Though investors are concerned about the economic impact of the COVID-19 Delta variant, if vaccines remain effective in minimizing severe cases that lead to hospitalizations and deaths, the adverse effects of the current COVID-19 surge are expected to be limited. According to The Conference Board’s Economic Forecast, the economy is expected to witness a steady rebound in the second half of the year on the back of improving consumer spending, a boost in inventories as the holiday period approaches, and continued government support. Furthermore, UBS boosted its year-end S&P 500 forecast to 4650, backed by solid growth activity, solid earnings momentum, and higher fiscal spending.
Given this backdrop, we think it could be wise to bet on high-beta stocks because they tend to perform better than the benchmark indexes in a bull market. As such, quality high-beta stocks Moderna Inc. (MRNA – Get Rating), Microchip Technology Incorporated (MCHP – Get Rating), Sasol Limited (SSL – Get Rating), and OneWater Marine Inc. (ONEW – Get Rating) could be ideal bets to cash in on the bullish market trend.
Biotechnology company MRNA develops messenger RNA-based medicines and vaccines to treat infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and auto-immune diseases. The Cambridge, Mass.-based company is known primarily for its COVID-19 vaccine sold under the brand name Spikevax.
This month, MRNA announced that it had begun seeking approval from the U.S. Food and Drug Administration (FDA) for a booster dose of the Moderna COVID-19 vaccine (mRNA-1273) at the 50g dosage level. The company plans to submit data to the European Medicines Agency (EMA) and other regulatory agencies worldwide in the coming days.
MRNA’s revenue increased significantly year-over-year to $4.35 billion in the second quarter, ended June 30, 2021. Its operating income came in at $3.06 billion, versus a 122 million operating loss in the prior-year quarter. The company reported $2.78 billion in net income compared to a $117 million net loss in the second quarter of 2020. Its EPS amounted to $6.46, compared to a $0.31 loss per share during the same period last year.
A $29.69 consensus EPS estimate for the current year represents a 1,614.8% improvement year-over-year. The $20.28 billion consensus revenue estimate for the current year represents a 2424.6% increase from the same period last year. Over the past year, the stock has gained 678.3% in price. Also, it has gained 304.8% year-to-date. In addition, the stock has a 1.48 beta.
MRNA’s POWR Ratings reflect this promising outlook. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
MRNA is also rated a B grade for Growth, Quality, and Value. Additionally, within the Biotech industry, it is ranked #34 of 508 stocks.
To see additional POWR Ratings for Stability, Momentum, and Sentiment for MRNA, click here.
MCHP develops, manufactures, and distributes semiconductor devices for various embedded control applications across America, Europe, and Asia. The Chandler, Ariz., company provides general-purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded microprocessor markets; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, and wireless connectivity applications.
This month, MCHP launched the industry’s most…
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