Moderna Nears Buy Point; Covid Vaccine Drives 320% Rise In 2021

Our IBD 50 Stocks To Watch pick for today is Moderna stock. The Massachusetts-based company, best known for its Covid-19 vaccine, develops therapeutics for infectious diseases.


On Thursday, shares of Moderna (MRNA) rose nearly 1% and appear to be forming a new cup base with a 497.59 entry. The growth stock has certainly been on a tear this year. Shares have climbed an impressive 320% since Dec. 31.

A year ago, the company didn’t even have a commercial product, while Moderna stock traded at less than a third of what it does today. But currently, Moderna is the second-biggest biotech company in terms of market cap. Its capitalization topped $100 billion for the first time in July.

The firm’s EPS and sales growth have been astounding this year after Moderna started selling its Covid-19 vaccine. It allowed Moderna to make a profit for the first time in its history in the March-ended quarter of 2021.

Share rose this week after the company said new data support a Covid booster shot eight months following the second dose. Chief Executive Stephane Bancel says the data support the benefit of boosters at eight months. The FDA is weighing booster shots.

Moderna stock holds a perfect 99 Relative Strength Rating. This indicates it is outpacing 99% of stocks in IBD’s database. The stock also carries a 90 IBD Composite Rating, which meets the minimum of 90 we like to see for growth stocks.

Moderna Stock

Moderna stock is a part of IBD’s biotech industry group. Headed into Thursday’s trade, the group ranked No. 57 out of the 197 industries tracked by IBD.

On Aug. 5, Moderna shares reacted mildly to a strong quarterly report that showed top-line growth of 6,462% t0 $4.3 billion. Earnings rose to $6.46 a share, making it the company’s second profitable quarter in history.

“I am proud of the progress our teams at Moderna have made in the past quarter in advancing our development pipeline while addressing a global pandemic and quickly establishing global manufacturing and commercial organizations,” Bancel said at the time. “We are pleased that our Covid-19 vaccine is showing durable efficacy of 93% through six months, but recognize that the delta variant is a significant new threat so we must remain vigilant.”

Analysts expect the company’s September-ended quarter to show continued growth, with EPS rising to $9.40 a share on revenue of $6.4 billion.

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