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Best COVID Drug Stocks to Buy on Trump Recovery

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Hey everybody, Dave Bartosiak with Trending Stocks. Ahhh, the ‘Rona. COVID-19. Novel Coronavirus. A scourge by any other name. Now, I am a light-hearted kinda guy, that often times borders on inappropriate. Or, I’m way past the line, looking back at it like, oops, my bad. I don’t want anyone to come away with the feeling that I am downplaying the seriousness of this worldwide pandemic. Enough disclosure.

Here in America, we are back-to-back World War champions. Russia could make an argument for a tag-team win in the last one, but come on. ‘Murica. Love him or hate him, The Donald got the Rona. And in true WWE fashion, he came down from the top rope and elbow dropped that bad boy. For those keeping score at home, an overweight, unathletic, stressed out 74-year-old beat COVID, and for the same reason Magic Johnson beat HIV. The best drugs that money can buy. If the money can buy the drugs, maybe we should look at the stocks of the companies making the drugs, so we can make the money, and the cycle continues.

Number one on the list here, Regeneron (REGN - Free Report) . According to a statement from the White House, Trump received an 8-gram does of the polyclonal antibody cocktail REGN-COV2. The drug is still in the experimental phase. This is the equivalent of a pre-emptive strike on COVID. Trump didn’t wait until things got bad, he went in and nuked this bad boy before it had the chance to bunker down. REGN-COV2 is currently being studied in four late-stage clinical trials. In September, the company announced early data showing the effect of its antibody cocktail on viral load and symptoms in 275 non-hospitalized COV0D-19 patients.

Then there’s Eli Lilly (LLY - Free Report) and its LY-CoV555 monotherapy. The company has already submitted its request for an emergency use authorization. It also anticipates it could provide as many as 100,000 doses by the end of this month and up to 1 million by next year.

Let’s take a look at how these developments are affecting the stocks on Zacks.com. Currently, we have REGN as a Zacks Rank #3 (Hold), however, there is some bullishness showing up in the estimates. Over the last ninety days, the Zacks Consensus Estimate for the current year has gone from $27.59 per share to $28.31 today. Next year’s number has also seen a similar rise with the number jumping from $31.92 to $33.13. Those numbers would represent growth of 14.75% for the current year and 17.02% for next year. That growth far surpasses the S&P 500’s expected contraction, at a P/E discount to the broad market as well. REGN trades at 20.9x earnings while the S&P 500 is rich at 27.25x.

Eli Lilly on the other hand, is already in the good graces of the Zacks Rank, coming in with a Zacks Rank #2 (Buy). In addition, the stock features a Zacks Value Style Score of B, Growth of B, Momentum of A, to help it round out with a VGM Composite Score of A. Just like Regeneron, the Zacks Consensus Estimates are moving in the right direction for both the current year and next year. Current year number is up from $6.82 to $7.32 while next year is up from $7.87 to $8.08. The growth is here too with current year growth at 21.19% and next year up at 10.29%. Nearly identical P/E here at 20.3x.

It looks to me like either of these stocks could be the big winners in COVID treatment.

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Regeneron Pharmaceuticals, Inc. (REGN) - free report >>

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