The Dow sank 600 points when news of coronavirus first began circulating. Though it's regained some of those losses, the market may still hurt for a time.
However, there are a few biotech stocks charged with seeking out a vaccine that could pop over the next year. In fact, our best biotech stock offers 182% upside potential.
Today, we're sharing our best stocks to buy this year that are working toward a vaccine and expecting a bump in the process.
The White House recently fast-tracked approval for vaccine trials, and we like these three biotech firms as the best chances to find one.
Moderna Inc. (NASDAQ: MRNA) is a Massachusetts-based biotech focused on drug discovery and development.
This company may have developed a potential shortcut to the process of finding a vaccine. It's actually looking at ways to shorten the process of developing vaccines for outbreaks like this in general.
This involves injecting a synthetic messenger RNA in patients that allows the body to develop its own unique defense.
This company is only 10 years old, and its novel approach to fighting cancers and cardiovascular, metabolic, and renal diseases has secured a place on the world stage.
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One of its earliest partnerships was a $24 million deal with the U.S. Defense Advanced Research Projects Agency to develop synthetic RNA technology to fight against biological weapons. Later, Moderna also went on to partner with the Biomedical Advanced Research and Development Authority to develop a Zika vaccine in 2016.
Now, it's working with the National Institute of Allergy and Infectious Diseases toward a coronavirus vaccine.
And it could lead the pack with its unique, speedy approach. Analysts give it a high 12-month target of $40 from today's $19.92. That's a more than 100% profit for investors.
This next stock, however, may have even more to gain...
Novavax Inc. (NASDAQ: NVAX) may develop a vaccine in three months.
The Maryland-based vaccine company already saw shares rocket 60% as coronavirus fears started to circulate in late January. That's an indication its price could react dramatically if Novavax beats the competition to an effective treatment.
What separates Novavax is that it specializes in vaccines - no fancy gimmicks - most famous for its flu vaccine.
This company is currently putting several different vaccines through clinical trials, and they should produce their late-stage results by the end of Q1 2020.
And Novavax has already developed vaccines for both SARS and MERs. Neither of these were approved in the end, but that doesn't mean the company can't come through on its ambitious three-month goal for the Wuhan virus.
If it is successful, the stock could potentially soar from today's $6.88 to the average analyst target of $13.75 - more than 99% profit for today's investor.
But we have a feeling this next company could produce a successful vaccine even quicker...
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Inovio Pharmaceuticals Inc. (NASDAQ: INO) is a Pennsylvania-based pharmaceutical. And it's already started phase 1 testing a vaccine under a $9 million grant from the Coalition for Epidemic Preparedness Innovations (CEPI).
What separates this company is its experience developing coronavirus vaccines. It worked on a vaccine for MERS in 2019.
Inovio stock rallied 12% on Jan. 24, when it won the CEPI grant. And it's since fallen as fears of the virus spreading into a pandemic are quelled.
But it's still a potential frontrunner for developing an effective vaccine.
Like Moderna, it's also known for working under a tight deadline. During the spread of the Zika virus in 2015, Inovio was able to start successful human vaccine trials in as little as seven months.
If Inovio can work at a similar pace this year, it might be the frontrunner in the global immunotherapy market for coronavirus vaccines.
And it already seems on pace to do so. It began testing a vaccine on animals on Jan. 11, and CEO Joseph Kim expects human trials "before early summer."
That's why the average analyst gives this stock a 12-month growth target of $9.43 from today's $3.34, or 182% profit for today's investor.
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