More than a year and a half into the Covid-19 pandemic, the world is changing. More people are returning to the office after months of working at home and restaurants have reopened. We may have more toilet paper on store shelves, but there are shortages of other products.
If the old saying that life’s only certainty is change holds true, the investing ecosystem is changing again, adjusting to a post-pandemic world. However, large swathes of Europe are battling the Delta variant of the virus, so there are still challenges.
Here are 10 stocks affected by Covid-19. Do they offer good value as the world – hopefully – moves beyond the pandemic? Let’s take a look.
Pfizer
Pfizer Inc. (PFE, Financial) was key in the development of a vaccine for Covid-19, and now it is dominating another part of the response to the pandemic with Paxlovid, a treatment for the virus. If Covid moves from pandemic to endemic, the market for this treatment is estimated at $6 billion for 2022. With a price-earnings ratio of 14.13 and a solid financial footing, Pfizer is a great pharma stock to consider adding to your portfolio for the long term.
BioNTech
BioNTech SE (BNTX, Financial) partnered with Pfizer on developing of one of the first vaccines against Covid-19, and there are other reasons to consider investing in this RNA technology leader. The stock has fallen 34% in the last month, so this could be a potential value opportunity.
Regeneron
Regeneron Pharmaceuticals Inc. (REGN, Financial) is the maker of the monoclonal antibody treatment that’s made hospitalization less likely for Covid-19 patients. With a price-earnings ratio of 11.08, GuruFocus rates the company’s profitability at an 8 out of 10. If you’re looking to add a medical stock to your portfolio, Regeneron has the growth potential that makes it worth a second look.
Moderna
Moderna Inc. (MRNA, Financial) stock has been down following additional review needed for its Covid-19 vaccine in teens, and its price-earnings ratio is 30.11, a little on the high side. For these reasons, Moderna may not be the best biotech option out there.
Johnson & Johnson
Johnson & Johnson (MRNA, Financial) earnings are up, thanks in part to its one-dose Covid-19 vaccine. Its price-earnings ratio is 24.34, so not terribly high, and GuruFocus rates the company's profitability 8 of 10. Still, its GuruFocus financial stability is only a six, so be cautious.
Amazon
Amazon.com Inc. (AMZN, Financial) and its services were golden among the FAANG stocks prior to the Covid-19 pandemic, but during lockdowns, when ordering items on Amazon and enjoying Amazon Prime were daily activities for many, the stock was a plus. Today, Amazon is more of a hold than a buy, although GuruFocus rates it an 8 in profitability.
DoorDash
When people were staying home during the lockdowns, DoorDash Inc. (DASH, Financial) grew rapidly. The question now is whether the stock will still be a viable growth choice as the world begins to move past Covid-19. Consumers may be excited to eat in restaurants again despite worker shortages. We think there are better growth stocks out there.
Zoom
Zoom Video Communications Inc. (ZM, Financial) is still frequently used, but was a must for teams that had to become virtual in 2020. Be careful in purchasing, since GuruFocus only rated Zoom a 3 in profitability. Its stock has dropped 21% this year, and the company is facing competition as well as declining use as more offices go back to in-person work.
Cisco Systems
With a GuruFocus profitability ranking of 9, Cisco Systems Inc. (CSCO, Financial) includes WebEx, a competitor to Zoom in the virtual meeting world. The plus to Cisco is that this tech powerhouse includes much more than video calls – hardware, software and other technological and communications equipment. This makes the company more diversified and a stronger player among video call-related stocks.
AMC Entertainment Holdings
Blockbuster movies and audiences are coming back to movie theaters, but arguably not in the numbers that will make AMC Entertainment Holdings Inc. (AMC, Financial) a good option for investors. GuruFocus rates AMC a 1 in financial stability, which is a potential red flag, and much of its growth in share price in 2021 was based on memes and Reddit threads pushing the stock higher.
