Coronavirus Stock Market: New Opportunities Rise With the Vaccine

This article about Coronavirus and the stock market was written by Gabriel Plat, a Financial Analyst at I Know First.

Summary

  • The vaccine is closer than we thought. Pfizer and BioNTech plan to distribute it by 2021;
  • AHT grew 228% in 3 days, indicating opportunities that might be available when the pandemic is over;
  • The entertainment and flight industries can be a huge opportunity to look at;
  • I Know First algorithm is the best way to maximize your profit amid these opportunities.

Is the Vaccine Really Coming?

This is a million-dollar question. Since the pandemic started, the world is waiting for a vaccine that could make our lives go back to normal. Researches are still in progress, but the light at the end of the tunnel might be closer than expected.

According to the New York Times, there are 12 different vaccines in Phase 3 of the trial. This phase is when large-scale efficacy tests are made to determine the efficiency of them. China and Russia already approved for limited use without the results of Phase 3 trials, but this can bring serious risks according to experts.

In April, I wrote an article talking about medical companies that were working in medical advancements against the new coronavirus. There, I listed the co-development of a vaccine from both Pfizer and BioNTech. Right now, the effectiveness of its vaccine is at 90%, according to staff members from both companies. Right now they are exactly in Phase 3, but the effectiveness is something that only they have achieved.

If their vaccine gets the authorization, Pfizer and BioNTech already revealed that they expect to manufacture over 1.3 billion doses for 2021.


How Can We Apply The Coronavirus Vaccine in the Stock Market?

Coronavirus Stock Market
Credit: Reuters

If the forecast for 2021 is right, we may see several sectors resurging. If the chosen vaccine is really the Pfizer and BioNTech one, we can have a peculiar opportunity. Because of their vaccine components, it has to be stored at -80°C. In other words, there will be a run for freezers.

Not every country in the world has the equipment to deal with storage at such a low temperature. And here is an opportunity for freezer companies to profit. Stirling Ultracold, B Medical Systems, Thermo Fisher Scientific Inc, and Helmer Scientific are some of the companies that can see a huge increase in their demand not only after the vaccine distribution but even right now for countries who want to anticipate the run for the products.

Freezer companies are not the only ones that can see the vaccine as a profit opportunity. The whole hospitality industry can go back to normal alongside the end of the COVID-19 threat. Ashford Hospitality Thrust stock (AHT) increased by almost 81% this December, and it may not be the only one to do such a thing in the near future. XOMA Corp (XOMA), a biopharmaceutical company, saw its stock returning 94.67% in the last 30 days. The healthcare service Tenet Healthcare stock (THC) also increased in the same period, with a yield of 43%.

AHT Stock Price Chart

What Opportunities Should We Look To?

On March 19, I wrote about sectors that were in danger following the pandemic. By logic, the end of the lockdown and the whole pandemic might give them a fresh start and a huge opportunity.

Entertainment companies are a great example. If the pandemic hit movie producers such as Disney (DIS) and Universal Studios (UVV), the recovery can and is already helping them. Both producers registered a value increase in the last six months. If the vaccine progress continues as expected, we can see the reopening at movie theaters at full capacity, maximizing movie earnings soon. This is also good news for movie operators such as AMC, whose stock is still below the price it was before the pandemic reached the U.S.

Coronavirus Stock Market
DIS and UVV stock chart

Additionally, the whole airline sector and its supply chain can be affected in a positive way. With no Coronavirus, flight companies will see more demand for flights, meaning more growth opportunities for the company and for its shareholders as well. Companies like Delta, American Airlines, and United Airlines are still seeing its stocks being traded much lower than it was before the pandemic. Considering holding and waiting for the vaccine is a very good opportunity for 2021.


AI Can Help You Profit in The Stock Market

Recently, I Know First artificial intelligence made a forecast for high-risk stocks. The AHT stock mentioned above, which rose 228% in three days, was part of the 9 out of 10 stocks that the algorithm correctly predicted. In other words, this return could be yours if you follow our AI and its forecasts.

The AI-powered algorithm is responsible for generating daily forecasts that help investors to understand stock trends and to invest properly. By using machine learning and over 15 years of stock database, the algorithm provides outlooks for different stocks in different time horizons, for both short and long positions.

In our last Coronavirus Stock Market Forecast, the algorithm generated a return up to 89.54% in a 3 months time horizon.

Stock Market Opportunities at Coronavirus Times chart

As you can see, the algorithm predicted correctly 9 out of 10 stock movements. The 20.35% average return in the package was more than twice the return the S&P 500 had in the same period of time.

In other words, getting the forecasts from our algorithm means a safer and better return for your investment.


Conclusion

The vaccine distribution is getting closer each day. Pfizer and BioNTech, developers of the vaccine with higher efficiency at the moment already declared that they want to distribute it in 2021.

This announcement can lead us to several different opportunities in the stock market. The Freezer companies are already increasing their supply to attend to their demands. Alongside, the same sectors that we have seen as threats for 2020 can arise soon after the vaccine. The hospitality industry, flight companies, and the whole entertainment and tourism industries may see a bright side next year.

To help you identify the best opportunities for 2021, I recommend the I Know First algorithm. Covering different stock types in different time horizons, I Know First AI is the best option to not miss any opportunity in the stock market.