The Best COVID-19 Stock to Buy Has Nothing to Do with Vaccines

Coronavirus vaccine stocks have been at the top of everyone's mind in 2020. But the best COVID-19 stock is not a vaccine stock.

There are plenty of biotech stocks out there that could be vaccine candidates. Of course, there's a rush on those as the White House seeks to accelerate COVID-19 vaccine production.

As many as 135 firms have developed treatments and vaccines, in fact. These include Gilead Sciences Inc. (NASDAQ: GILD) and AstraZeneca Plc. (NYSE: AZN).

The trend has pushed some vaccine stocks sky-high since March. It seemed to happen anytime a company announced progress on a trial. For example, Inovio Pharmaceuticals Inc. (NASDAQ: INO) gained more than 400% after we wrote about it earlier this year.

But the uncertainty grows more obvious as these stories come and go. Much of the COVID-19 vaccine stock craze is hype-driven.

That means you have often have to overpay to own one of these companies, and it may not be the one that ends up with the successful vaccine.

But there is a way to profit from biotech firms rushing to combat the coronavirus, and it could double your money...

Why You Should Look Beyond Vaccines

Investors have gotten excited about a potential treatment or all-out cure several times throughout the year. But we are still yet to see those pan out. AstraZeneca's vaccine was recently put on hold after an adverse reaction was reported from a test participant in the United Kingdom.

It's tough to get a clear picture ahead of the election as well. U.S. President Donald Trump reportedly wants a vaccine by October. White House coronavirus advisor Anthony Fauci thinks a vaccine in 2021 is more likely.

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Regardless of who is talking, the only thing certain is that a vaccine is uncertain.

We do know one thing, however. And it's that vaccines are just a piece of a much bigger pandemic puzzle.

That means the best COVID-19 stock is not a vaccine stock.

Sure, you could profit from biotech stocks like CureVac BV (NASDAQ: CVAC) and Moderna Inc. (NASDAQ: MRNA) if one of them wins the vaccine race.

But what are your chances? One in 135.

This COVID-19 stock, however, is not on Wall Street's radar just yet. It's not getting hyped up, simply because it's not a vaccine stock.

Still, it is crucial to fighting the coronavirus. For that reason, Money Morning's Michael Robinson says it could double in just two years...

The Best COVID-19 Stock Wall Street Missed

Recently, COVID-19 cases in the United States have gone down from 50,183 on Sept. 4 to just 22,192 on Sept. 8. The nation has seen a gradual decline from 75,821 since July.

Still, because much is still unknown about how the coronavirus evolves, it's a mystery where we will be in the next few months. It's even more of a mystery what lawmakers might decide to do about that.

So where can you begin to invest with all these unknowns? Holding the best COVID-19 vaccine stocks is one thing.

Another thing is COVID-19 testing. This is a stealthy disease. And even before we get a vaccine out to the millions that need it, we need an efficient way to test.

That's where Quidel Corp. (NASDAQ: QDEL) comes in.

Quidel provides diagnostic and test equipment to doctors and medical facilities. It's a major player in providing COVID-19 test equipment.

But what makes it so important is that its equipment isn't limited to COVID-19. The company also provides prenatal testing equipment, as well as testing for flu and other viruses.

Its products are small and easy to use. The goal is to make it so doctors don't need an entire lab to make a test happen.

The USDA approved Quidel's COVID-19 test with an Emergency Use Authorization (EUA) on March 17. That was a breakthrough for the company, and the stock has climbed 65% since then.

It's going to go even higher in the next few months...

Quidel is a small company, but it has treated 25,000 patients around the world. It has 27 drug candidates right now, making it a top biotech stock.

More recently, Quidel has even sped up its testing, making it 40 minutes faster than before. This was also approved by the USDA for emergency purposes. This made Quidel the global leader in COVID-19 testing.

Quidel is available at a significant discount after getting slammed by the news. In this case, it's safe to assume criticism comes with the territory.

On paper, Quidel looks unbeatable. The company has grown earnings per share by an average of 76% over the past three years.

If it continues at that rate, it could double in 11 months. Michael Robinson says 24 to 28 at most.

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About the Author

Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.

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