3 Coronavirus Stocks to Own Until the Fear Fades

Stocks to buy

[Editor’s Note: This article was updated on Feb. 28 to include the most relevant information.]

More than $6 trillion of global market value has been wiped out all thanks to coronavirus fears and concerns it could significantly slow global growth.

To date, the death toll is quickly nearing 3,000, with 83,000 cases around the world. We’re now also seeing outbreaks in South Korea, Italy, Iran, Mexico, and Nigeria. In California, a patient who tested positive for the virus is now in serious condition and intubated.

The U.S. patient could be the first instance of “community spread,” says CNN. That may suggest the virus is out there in the community and everyone may be at risk, regardless of travel history.

“We don’t know who might be carrying it. We don’t know who we can get it from,” added Dr. Dean Blumberg, an infectious disease specialist at UC Davis Medical Center.

Worse, the World Health Organization just warned the virus could reach most, “if not all” countries around the world.

While some analysts have said that its time to buy the dip, others, like economist Mohamed El-Erian, strongly urge investors to resist the urge to buy. “I would say continue to resist, as hard as that is, to simply buy the dip because it has worked in the past,” said El-Erian.

These coronavirus stocks have been standout winners in the chaos.

Alpha Pro Tech (APT)

The last time we weighed in on Alpha Pro Tech (NYSE:APT), it traded at $7.86. That was on Jan. 28. The stock opened at $37.23 one month later.

This is the company that makes disposable face masks for the public, so you can guess why they’ve had such an astounding run lately.

It could run even higher, in my opinion, as demand explodes for protective gear worldwide. Plus, as a result of increased customer demand due to the outbreak of the Wuhan coronavirus (COVID-19), the company just announced it booked over $10.4 million in orders for APT’s proprietary N-95 Particulate Respirator face mask.

Co-Diagnostics (CODX)

Source: Shutterstock

Shares of Co-Diagnostics (NASDAQ:CODX) rallied from $4.42 to a high of $18.25 in recent days. The run-up came after the company received security clearance for its Logix Smart Coronavirus COVID-19 test.

This is especially important after flawed tests raised uncertainty about how prepared the U.S. is to even detect the virus.

Reportedly, it’ll be immediately available for export from the U.S. for rapid testing. If successful with its test, this $458 million company could double, if not triple, in my opinion.

Co-Diagnostics CEO Dwight Egan said, “Co-Diagnostics has received overwhelming interest in our novel coronavirus diagnostic from all over the world since first announcing its development a month ago.”

It’s definitely a stock to keep an eye on.

Novavax (NVAX)

Source: Shutterstock

Shares of Novavax (NASDAQ:NVAX) nearly doubled over the last week on news it began animal testing for a coronavirus vaccine candidate. It’s expected to start COVID-19 vaccine trials on humans by spring.

Investors are encouraged by the company, especially after a solid history of developing vaccines for MERS and SARS.

“Our previous experience working with other coronaviruses, including both MERS and SARS, allowed us to mobilize quickly against COVID-19 and successfully complete the critical preliminary steps to engineer viable vaccine candidates,” said Stanley C. Erck, President and Chief Executive Officer of Novavax. “Now that the protein has been expressed stably in our baculovirus system, we aim to identify the optimal candidate and scale up production of sufficient vaccine for preliminary clinical trials. We are now well-positioned to advance the COVID-19 vaccine candidate to Phase I clinical testing in May or June.”

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.

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