The first quarter was a difficult one for the S&P 500 and for investors as a variety of concerns circulated — from worries about the revenue potential of artificial intelligence (AI) companies to the pressures of turmoil in Iran. All of this pushed many investors to avoid AI players and other growth stocks and turn to companies seen as stable parts of the economy — such as healthcare businesses.
While many industries struggled in recent weeks, a variety of healthcare stocks soared — from pharma giant Johnson & Johnson to dialysis services provider DaVita Inc. But you’ll never guess which healthcare stock delivered the best first-quarter performance in the S&P 500. It’s a company that’s been through ups and downs in recent years, but could be heading for a whole new era of growth. Let’s zoom in for a close look — and consider whether the positive momentum may last.
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The company I’m talking about is Moderna (NASDAQ: MRNA) — it soared 72% in the first quarter, the best performance among healthcare companies in the S&P 500. What’s particularly impressive here is that this marks a clear shift in investor sentiment regarding Moderna. The company soared in the early days of the pandemic as it developed a coronavirus vaccine, brought the product — its first — to market, and generated blockbuster revenue. But in later stages of the crisis, as demand for vaccines slipped, Moderna’s earnings and stock performance followed.
MRNA data by YCharts
And for the past few years, despite Moderna’s efforts to turn things around, many investors have avoided the stock.
So, what’s prompted the recent optimism? As investors shifted out of stocks that have soared in recent years, they looked for new opportunities — stocks that haven’t performed very well but could generate growth in the quarters or…
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