Since peaking at $62 in July 2020 at the height of the COVID-19 vaccine euphoria, AstraZeneca (NASDAQ:AZN) is stuck in a downtrend. Its vaccine gets the most negative attention compared to that offered by Moderna (NASDAQ:MRNA) and BioNTech (NASDAQ:BNTX). At current prices, AZN stock is a compelling value play. The stock trades at a forward price-to-earnings of around 15 times.
Last week, Europe and other countries stopped the use of AZN’s vaccine. Days later, Europe and Indonesia joined the resumption of administering it to millions. The European Medicines Agency had maintained that the benefits of the shot outweigh the side-effects of getting infected by the virus.
Scientists cannot ascertain the AZN vaccine caused the blood clots. It will need more clinical data. Vaccinating more subjects is the best way to conclude. As of mid-last week, more than 17 million in the EU and the U.K. received the Oxford-AstraZeneca vaccine. There were fewer than 40 cases of blood clots.
Pfizer (NYSE:PFE) is also an attractive value play. The drug manufacturing giant has a partnership with BNTX in the mRNA-based COVID vaccine. But PFE stock dipped sharply from the $43.08 peak reached in Dec. 2020. PFE is even cheaper than AZN stock. Its forward P/E is around 12 times. PFE stock pays a dividend of over 4%. Both stocks would suit income investors seeking modest capital appreciation and steady dividends.
