Most of the stocks collapsed due to the coronavirus epidemic, as the businesses were suspended during all the countries’ lockdowns. However, there are several stocks which gained during the pandemic due to their special niche. Such are medicine and tech stocks, for example, as well as internet stocks.
Abbott Laboratories has real potential and resources to make a difference. The company’s tests to identify the coronavirus have helped healthcare providers make significant headway in the fight against the pandemic.
Labs throughout the U.S. are already using Abbott’s molecular test. And the FDA granted Abbot an emergency use authorization (EUA) for a rapid coronavirus testing system on April 3. The new product can ascertain results much faster than any other available COVID-19 test. It detects positive results in five minutes and negative results in 13 minutes.
Analyst Kristen Stewart noted that all the medical facilities and physician offices would need these tests, and pricing will probably be in the $35-$45 range per test. This means that Abbott will gain significantly over the coming months.
According to reports, 4 million of Abbott’s molecular tests can be conducted each month on its m2000 systems, with the company charging about $30 per test. Stewart set the price target at $98 for this stock. Investors will gain 23% over the year with this target.
What are the experts’ estimates about Gilead Sciences?
Gilead Sciences is another biotech stock, which made a great headway due to the coronavirus outbreak. The company works on its experimental COVID-19 treatment currently. It announced recently about plans to donate 1.5 million doses of the new drug, which could treat 140,000 patients.
Furthermore, Gilead Sciences’ shares rose by 20% year-to-date. This gained Wall Streets’ attention due to the new medicine. Analyst Jeffries’ Michael Yee believes that the stock will hit a high again. He set a price target at $89 for the stock, indicating a 14% upside potential.