Daily Traders Edge

3 Ultra-Popular Growth Stocks Expected to Increase Sales 559% to 809% by 2024

September 10
09:38 2021

Things couldn’t be any better for growth stocks. Historically low lending rates, ongoing quantitative easing measures from the Federal Reserve, and a free-spending Congress have rolled out the red carpet for fast-growing companies. Access to cheap capital is abundant, and growth stocks have deployed their cash to hire, innovate, and even acquire other businesses.

Over the next couple of years, a handful of ultra-popular growth stocks are really expected to put the pedal to the metal. The following three growth stocks are projected by Wall Street to deliver aggregate sales increases ranging from 559% to 809% by 2024.

Moderna: 809% implied sales growth by 2024

Perhaps it comes as little shock that one of the most successful coronavirus disease 2019 (COVID-19) vaccine developers, Moderna (NASDAQ:MRNA), is expected to be one of the fastest-growing companies on the planet over the next four years. After reporting $803 million in 2020 sales, Wall Street’s consensus currently has it pegged for $7.3 billion in revenue by 2024. Interestingly, this is down significantly from the $20 billion in net product sales Moderna is forecasting for 2021.

As you’re probably aware, there are around a half-dozen global COVID-19 vaccines, but few have offered the initial efficacy that mRNA-1273 brings to the table. Moderna’s November-released trial data showed a vaccine efficacy (VE) of 94.1%, which is only rivaled by the 95% initial VE reported by Pfizer/BioNTech for their vaccine. Moderna has become one of the two core vaccination options in developed markets. The company anticipates producing between 800 million and 1 billion doses this year, and following up with between 2 billion and 3 billion doses in 2022.

While there is no shortage of question marks surrounding COVID-19, the biggest looming uncertainty for vaccine developers is whether booster shots or recurring annual vaccines will become necessary. Though we still don’t know the answer to that question, the data has begun to point to the need for a third booster shot for vaccinated individuals. In other words, Moderna could be looking at its one-time bump in sales becoming something of a recurring revenue stream.

So, why the drop-off from $20 billion in net product sales in 2021 to Wall Street’s estimate of $7.3 billion by 2024? One reason is likely to be competition. We’ll almost certainly see a handful of new vaccines enter the market in the coming year(s), which’ll reduce Moderna’s potential patient pool. There’s also the aforementioned uncertainty as to whether or not COVID-19 vaccines will be ongoing for years to come, or if a three-shot course will prove effective.

Maybe the biggest concern of all is that mRNA-1273 is the company’s only revenue-generation product. With a $168 billion market cap, things would have to be perfect from here on out for Moderna to justify this valuation — and that’s unlikely.

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