We recently published a list of 10 Stocks To Trade Without Tariffs And Interest Rate Fears. In this article, we are going to take a look at where Moderna, Inc. (NASDAQ:MRNA) stands against other stocks to trade without tariffs and interest rate fears.
The Federal Reserve this week decided to keep interest rates unchanged, causing Donald Trump to lash out at the Fed chief. Jerome Powell seemed satisfied with the current state of the economy and the job market. What he did not like was the high uncertainty prevailing in the market.
There’s a good reason why the uncertainty is causing problems for the Fed. It can’t reliably predict the future path of the economy if it doesn’t know what data to put in its models. This is pretty much the same problem that stock analysts have. With tariffs causing problems for American businesses, many investors are seeing their portfolios shrink.
In such a scenario, we decided to look at stocks that are largely protected from both tariffs and interest rates. This ‘protection’ comes from the fact that their bull thesis is unlikely to be impacted by either of these factors.
To come up with the list of stocks protected from tariffs and interest rates, we looked at the recently released list of Goldman Sachs’ top stocks with micro-driven volatility.
A scientist surrounded by vials and beakers in a modern laboratory, proudly displaying a vaccine.
Moderna, Inc. (NASDAQ:MRNA)
Moderna, Inc. operates as a biotechnology company that develops, discovers, and markets messenger RNA therapeutics and vaccines. The company provides treatment of immuno-oncology, autoimmune, cardiovascular diseases, rare diseases, and infectious diseases.
MRNA recently extended its partnership with Merck to develop mRNA-based Personalized Cancer Vaccines (PCVs). This vaccine will be used with KEYTRUDA (pembrolizumab), which is the best-selling cancer treatment drug across the world. This collaboration has great potential to boost the company’s growth:
“There are positive signs going into 2025. The market volume for COVID-19 vaccines has been relatively stable for two years, and public health recommendations for vaccinations are normalizing. We are encouraged to see the emergence of a sizable and durable long-term COVID-19 vaccine market.”
The firm revised its guidance for 2025 from $2.5 billion to $1.5 billion which is disappointing. The main reason behind this is struggles in the RSV market and reducing demand for COVID-19 vaccines. MRNA’s stock was at its peak during COVID-19 as it went from $11.54 to $497, but after the pandemic, the stock fell sharply and continues to do so.
Now the company is focused on developing new vaccines including a seasonal flu vaccine (mRNA-1010), a vaccine for COVID-19, and influenza, and vaccines for cytomegalovirus (CMV) and norovirus. It has 9 vaccines in the final phase and the management is also expecting approval of 3 new products in 2025.
With collaboration and product innovation, the company is set to grow steadily. The stock has lost 70% of its value in a year and the lowered guidance is priced in. Once investors realize the strong pipeline of products, the stock could reverse for a bull rally.
Overall, MRNA ranks 3rd on our list of stocks to trade without tariffs and interest rate fears. While we acknowledge the potential of MRNA as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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