Are you looking for Corona test stocks? Lately, it seems like this will be our new normal. As a result, companies have been racing to be the first to bring us COVID-19 tests.
How will that affect the stock price of these companies? With with the Corona virus seemingly here to stay, tests will be needed in large quantities.
Corona Test Stocks
- Looking for corona test stocks? As the U.S. heads for a second, or for some, third spike of COVID-19 infections, several companies are creating various testing options. They need to identify possible infections and infectious individuals to best stop the COVID-19 viral spread prior to a safe and effective immunization being available. Creating useful and reliable products is difficult. Even the FDA is warning of both fake and/or unreliable tests.
Several companies do fall into the desired category and have done well since the pandemic started. Companies that can win this race will potentially be successful.
And their investors will, in turn, also make gains with corona test stocks. However, we do urge caution as each day moving forward is a day closer to a sector crushing trusted immunization.
1. The Swab and Send
There are a few companies that do the now famous nasal swabs to identify an active COVID-19 infection. The winner, by far, has been Quest Diagnostics(NYSE:DGX).
Quest is currently sitting at $125/share; up from an April low of $73/share. Quest is the choice for most clinics that don't have on-site testing capabilities.
Through October, they have produced 22 million of the 134 million tests to date. In July, Quest stated that they were conducting 335,00 combined active infection and antibody tests per day with a 1-2 day turnaround for most tests.
Quest is making a great case for corona test stocks to look at. As a result, you can look at them along with food delivery stocks.
2. In-Office Swabs
For the hospital scale and major clinics that wish to conduct testing in house, the big player is Hologic (NASDAQ:HOLX).
They're maker of two products. The most popular being their “Panther Fusion” machine; which only uses Hologic tests. And their lesser known “Aptima” tester.
Both are for the identification of active COVID-19 infections. Their stock is currently sitting at $69.69/share up from its March low of $29.38/share.
Combined, the two Hologic machines are making over 1.5 million diagnoses a week. And the company’s molecular diagnostics segment third-quarter revenue has grown to $460.3 million, a 170% year over year rise.
Make sure to check out fundamental analysis on corona test stocks. Any drug or bio tech company going for this needs to be vetted.
3. On-Site Rapid Testing
For smaller outpatient clinics and doctors offices, Quidel Corp (NASDAQ:QDEL) is the choice. From their September slump of $152/share QDEL is now trading at $263/share.
Quidel has three different testing options. Many clinics already have Quidel’s “Sofia” analyzer device used to test for many pathogens. They just need a “SARS Antigen FIA” addition to it to be capable of on-site 15-minute COVID-19 test.
Quidel saw a second-quarter sales volume increase of 86%, year over year. In July they signed a $71 million deal with the NIH(National Institute of Health) to increase their diagnostic unit production from 84 million units to over 220 million units per year; a 164% rise. This deal will likely bring better earnings with it to boot.
Now if you're looking for a corona test that needs no lab equipment check out corona test stocks Abbott Laboratories (ABT). They have several solutions, including their “BinaxNOW” test, offering patients five minute results.
It requires no additional lab equipment. Abbott’s stock is up from a March $62.82 to $106.4/share. It's unknown if they're trying to produce the at-home version of this test.
4. At Home Testing
For many, not having to go to a medical center or office and potentially expose themselves to the virus if they're only going to check if they have it in the first place is a benefit.
An accurate and reliable at-home test that's covered by most insurance would be the best to prevent further transmission. Being the first-mover for reliable at-home testing is a step forward.
And is held by an unexpected retailer. However, getting insurance companies to pay is a harder step. One that has not been passed yet.
The big box bulk seller Costco (NASDAQ:COST) is now marketing a $129.99 standard or $139.99(with video observation) stay at home PCR by AZOVA.
From P23, selling kits through an emergency-use authorization can be a safe and reliable test with a turn around of between 1-2 days. This could be a game-changer for the industry if it gains acceptance by consumers and insurance companies.
List of Corona Test Stocks
- CVS Health (NYSE:CVS)
- Fulgent Genetics (NASDAQ:FLGT)
- Oaktree Acquisition (NYSE:OAC)
- LabCorp (NYSE:LH)
- Rite Aid (NYSE:RAD)
- Walgreens (NASDAQ:WBA)
- Walmart (NYSE:WMT)
Above are seven other retailers and labs either trying to get their own version of at-home testing up and running. Most importantly, it requires FDA approval. Or they've received an emergency approval and are in the initial marketing phases of this testing.
Whoever ends up with a safe, reliable test, for a low enough price that people feel comfortable with, will for certain, win in the short term.
For how long, and the total number of these different kinds of tests will be needed is the most important questions that only time will answer.
And you can keep an eye out for any IPO coming. Especially if it has to do with corona test stocks.
Corona Test Stocks Bottom Line
Corona test stocks have the potential to be big. Especially as it seems that COVID-19 cases are back on the rise. Hopefully they come up with a more comfortable way to be tested as things progress.
Just remember that whether you're implementing day trading strategies or investing in them, make sure you've looked at the technicals and fundamentals. You want the best entry on your trade.