Moderna (MRNA) Stock Surges: A Smart Investment After Impressive Q1 Sales?

• Moderna (MRNA) stock breaks out for the first time in over a year after a significant quarterly beat, largely due to its Covid vaccine, Spikevax.
• The company’s RSV shot is set to be considered for approval by the FDA later this month.
• Moderna is also expanding its efforts in cancer treatment, partnering with Merck on a cancer vaccine.

Moderna’s stock sees a significant boost following a successful quarter, largely due to its Covid vaccine. The company is also set to have its RSV shot considered for FDA approval and is expanding its efforts in cancer treatment.

Moderna’s Q1 Performance and Future Outlook

Moderna beat first-quarter sales expectations and reported narrower-than-expected losses. However, sales plummeted nearly 91% year over year and losses reversed from a year-ago gain of 19 cents a share. Despite this, Moderna expects the majority of its sales to come in the second half of 2024, aligning with the seasonal market for Covid, flu, and RSV. The company is hoping to gain FDA approval for its RSV vaccine and is also testing a combination vaccine to prevent Covid and the flu in one shot.

Moderna’s Annual Metrics

Moderna stock went public at 23 in late 2018. In 2020, shares rocketed more than 434%. The gain was less bullish in 2021, with shares rising 143%. In 2022 and 2023, shares toppled a respective 29% and nearly 45%. Sales tumbled 64% in 2023, coming in at $6.85 billion. But Moderna turned in per-share losses of $12.33, reversing from a year-earlier gain of $20.12 a share.

Technical Analysis of Moderna Stock

Moderna stock broke out of a cup-with-handle base with a buy point at 115.89 on May 2, the day the company reported its first-quarter earnings. Shares are now just above the buy zone, which runs up to 121.68. Moderna stock is also above its 50-day and 200-day moving averages, MarketSurge shows.

What’s After Covid Shots?

Investors are paying close attention to the bespoke cancer vaccine in partnership with Merck. The shot prompts an immune response against a patient’s own tumor cells. Beyond cancer, Moderna also has a breakthrough designation for its RSV shot. In older adults, the shot proved almost 84% effective against mild disease and more than 82% effective against severe RSV.

Is Moderna Stock A Buy Right Now?

No, Moderna stock is not a buy. Shares have broken out, but are now above their buy zone. If Moderna stock returns to that 5% zone, savvy investors could consider adding to their position. But, keep in mind, sales are still falling and the company continues reporting losses. And analysts don’t expect a return to massive pandemic-era growth until 2025.