Three of the Top Ways to Trade the Coronavirus Resurgence

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The coronavirus threat is far from over.

In fact, we may be seeing a “second wave” just weeks after global economies began to reopen.  New cases and hospitalizations are aggressively sweeping across Florida, California, Texas, Alaska, Arkansas, Kentucky, Mississippi, North Carolina, Oregon, South Carolina, and Utah.

Phoenix Mayor Kate Gallego even just admitted, “We opened too much too early and so our hospitals are really struggling.”

Brazil, the UK, and China are reporting higher case counts, as the world nears the eight million-case mark.  It’s all leading to fears the global community may need to shut down again in an attempt to stop an unstoppable virus until we have a vaccine in hand.

However, even in times of panic, there is still plenty of opportunity to be found in vaccine stocks, face mask stocks, volatility, and “stay at home” stocks, including:

Moderna Inc. (MRNA)

Reportedly, Israel is in advanced talks with Moderna to buy its coronavirus vaccine, which is entering the final stage of testing. This news comes after Moderna announced it planned to start a trial of 30,000 volunteers for its vaccine in July.

And, according to the company:

“Moderna has finalized the Phase 3 study protocol based on feedback from the U.S. Food and Drug Administration (FDA). The randomized, 1:1 placebo-controlled trial is expected to include approximately 30,000 participants enrolled in the U.S. and is expected to be conducted in collaboration with the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH).

The trial’s primary endpoint will be the prevention of symptomatic COVID-19 disease; key secondary endpoints include prevention of severe COVID-19 disease (as defined by the need for hospitalization) and prevention of infection by SARS-CoV-2, the virus that causes COVID-19. The primary efficacy analysis will be an event-driven analysis based on the number of participants with symptomatic COVID-19 disease. Based on the results of the Phase 1 study, the 100 μg dose level was chosen as the optimal dose level to maximize the immune response while minimizing adverse reactions. Moderna has completed manufacture of vaccine required to start the Phase 3 study. The Company expects dosing in the Phase 3 study to begin in July.”

Alpha Pro Tech (APT)

With a resurgence of cases, we’re likely to see a major pickup in face mask demand, too.

Lloyd Hoffman, President and CEO of Alpha Pro Tech, commented, “The unprecedented surge in demand for our personal protective equipment, otherwise known as PPE, resulting from the outbreak of the coronavirus, COVID-19, particularly our N-95 Particulate Respirator face mask and face shields, drove quarterly sales and significantly higher gross profit for the first quarter.”

“We are incredibly proud of our employees and their ability to adjust and respond to evolving circumstances and to successfully navigate industry changes and macro- economic cycles in these unprecedented times. Our initial response to the tremendous spike in demand for our N-95 face masks, which are 100% sourced and manufactured in the United States, was quick and demonstrates our continued commitment to navigating an ever-changing landscape. We are working diligently to expand production capacity of our N-95 face mask and our face shields in order to meet the extreme demand for these products,” he added.

Teladoc Health (TDOC)

Telehealth stock are likely to push higher, too.

Analysts at Forrester say virtual care visits could soar to one billion this year.

Analysts at Frost & Sullivan say the industry could grow sevenfold by 2025 – a five-year compound growth rate of 38.2%.

“The critical need for social distancing among physicians and patients will drive unprecedented demand for telehealth, which involves the use of communication systems and networks to enable either a synchronous or asynchronous session between the patient and provider,” said Victor Camlek, healthcare principal analyst at Frost & Sullivan, as quoted by Healthcare IT News. 

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