BioNTech Stock Pops On Bullish Quarterly Expectations Even As Delta Conquers U.S.

BioNTech stock popped Monday after the Covid vaccine maker said it would announce second-quarter earnings results in a week.


Analysts polled by FactSet expect BioNTech (BNTX) to report adjusted earnings of $8.94 per share and almost $3.86 billion in sales. Earnings would reverse from a year-earlier loss and sales would skyrocket by a quadruple-digit percentage.

The bullish view comes amid sobering news. The Centers for Disease Control and Prevention recently revised its Covid guidance, suggesting people in most states wear masks indoors. A contagious variant known as delta accounted for about three-quarters of U.S. cases as of mid-July.

Breakthrough infections in vaccinated people are also on the rise. A CDC study following an outbreak in Massachusetts tracked 469 Covid-19 cases among residents between July 3-17. Close to three-quarters of those, 74%, were among vaccine recipients.

But in morning trading on the stock market today, BioNTech stock jumped 3.4%, near 339.40, ahead of its second-quarter report next Monday morning.

BioNTech Stock Pops Ahead Of Report

The company has just one product on the market: its Pfizer-partnered Covid vaccine. During the period ended June 30, Pfizer reported $7.8 billion in sales of the vaccine. This year, Pfizer expects $33.5 billion in Covid vaccine sales. That number could change based on new contracts and possible booster shots.

Still, vaccine resistance remained at a standstill in the recent IBD/TIPP Poll. More than a quarter, 26%, of people surveyed don’t plan to become vaccinated — soon or at all.

Nearly half those who never plan to receive a Covid shot, 46%, say they are concerned about possible side effects. Meanwhile, 23% say they don’t generally trust vaccines, 18% don’t trust the government and 7% don’t expect to contract Covid or need the vaccine. The remaining 7% didn’t specify a reason. As it stands, vaccine resistance won’t hurt sales of the vaccines, nor BioNTech stock. Individuals aren’t purchasing the shots; governments are.

Each of the Covid shots authorized in the U.S. has been tied to a side effect. Messenger RNA shots from Pfizer/BioNTech and Moderna (MRNA) heighten the risk of heart inflammation in some people. The U.S. paused use of the Johnson & Johnson (JNJ) vaccine due to the risk of blood clots. It’s also been tied to a rare immune system disorder.

But that hasn’t deterred BioNTech stock investors. This year alone, shares have rocketed close to 316% as of midday Monday.

Highly Rated Biotech Stock

BioNTech stock has a best-possible Relative Strength Rating of 99, according to IBD Digital. This puts shares in the top 1% of all stocks in terms of 12-month performance.

Shares also have a strong Composite Rating of 95. This means BioNTech stock trades in the leading 5% of all stocks in terms of fundamental and technical measures.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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