July 14, 2022, BioNTech SE (NASDAQ:BNTX) and Vista Outdoor Inc. (NYSE:VSTO)
The co-creator of the first COVID vaccine and an oversold outdoor sports play could be the best stocks to buy now.
June’s CPI inflation data was hotter than expected at 9.1%, rattling investors. The market dropped for the third day in a row, with the Dow declining 208.51 points (0.67%), the S&P 500 falling 0.45%, and the Nasdaq dipping 0.15%. However, there is hope that the worst is over. Amid cautious optimism for the rest of 2022, BioNTech SE (NASDAQ:BNTX) and Vista Outdoor Inc. (NYSE:VSTO) could be two of the best stocks to buy now.
First, there’s BioNTech SE, the co-creator of the first COVID vaccine with Pfizer. As much as we would like to just forget COVID even exists, that is precisely why BioNTech is one of the best stocks to buy now. COVID is still here and raging unchecked. Variants continue spreading and reinfecting supposedly immune people. That, in a nutshell, is why this stock has skyrocketed 42.31% since last month’s lows. There is renewed demand for next-gen vaccines to target future strains, and predictably BioNTech is at the forefront. Perhaps that’s why analysts at SVB Leerink LLC recently upgraded the stock from MARKET PERFORM to OUTPERFORM and see an almost 34% upside.
Vista Outdoor Inc. is another of the best stocks to buy now. This outdoor sports and recreation stock has been clobbered this year and trades near 52-week lows. Yet while it sits -48.45% below its highs, this stock offers some of the deepest value in this market environment. However, strong cash flows and mouth-watering multiples aren’t the only reasons this is a STRONG BUY. Recent coverage from analysts at MKM Partners set a BUY rating on the stock with an almost 100% upside.
All stocks nowadays have some risks. But these two stand out as the best stocks to buy now.
BioNTech SE (NASDAQ:BNTX)
With COVID here to stay, the co-creator of its first vaccine has seen its stock gain momentum with over 33% of room to run.
Germany-based biotechnology company BioNTech SE is a prominent player in this industry. It made a name for itself during the onset of the COVID pandemic with a revolutionary technology called mRNA. After partnering with pharma giant Pfizer, together they brought the world the first COVID vaccine.
As COVID cooled off, so did the BioNTech stock. It touched a record high of $457.93 in August 2021 and lost ¾ of its value by June 2022.
However, as COVID resurges and becomes a renewed concern, BNTX sits as one of the best stocks to buy now. There is renewed demand for broad-based and variant-targeting vaccines for the fall. Maybe that’s why the stock soared 42.31% since touching last month’s lows.
Analysts also see the potential for even more room to run. But we will detail that later.
Demand for New COVID Vaccines is Causing BNTX’s Income to Swell
Partnering with Pfizer in 2020 to create a COVID vaccine put BioNTech on the map.
Today, in 2022, with the fear of new variants prolonging the pandemic, BioNTech no longer is an upstart. It’s a prominent player.
Omicron’s BA.4 and BA.5 sub variants are raging worldwide. Predictably, the U.S. FDA wants new boosters. This would mark the first significant retooling of COVID vaccines with the hope that they’d be ready for fall.
To meet demand, Pfizer and BioNTech signed a $3.2 billion deal with the U.S. government for 105 million doses. This includes its original booster and Omicron-adapted vaccine, pending regulatory clearance.
If you’re an investor, you want to get into the BioNTech stock now. The average price per dose in the new deal is over $30. That’s a 50+% increase from the initial $19.50 per dose the federal government paid.
Strong Cash Flows, Margins, and a Discounted Valuation
You won’t get any substantial dividends from BNTX. However, from a fundamental perspective, BioNTech has a trifecta of strong cash flows, solid margins, and deep value. Together, this makes it one of the best stocks to buy now.
First and foremost, BNTX’s cash flows can sufficiently cover interest payments.
It also scored a 7 out of 9 Piotroski Score, which signals the Company has healthy Liquid Balance Sheets, Profitability, and Operating Efficiency.
A deeper dive into the Company’s fundamentals paint an even more outstanding picture of its profitability and efficiency, including its
When looking for one of the best stocks to buy now, you want one that offers deep value. BioNTech certainly provides that. First of all, its valuation implies a robust free cash flow yield of 12.7%. A 3.1x trailing P/E and 4.4x forward P/E further add to BNTX’s deep value case.
Recent Analyst Activity Points to an Almost 34% Upside…But BNTX Could Actually More Than Double
Analysts in the last week have pounded some bullish drums for the BNTX stock. Yesterday (July 13, 2022), SVB Leerink upgraded BNTX from MARKET PERFORM to OUTPERFORM and gave it a $223.00 price target. That’s an almost 34% upside from July 13, 2022’s $166.62 close.
Yet beyond this, other analysts see even higher price targets. Two days before this, HC Wainwright maintained a BUY rating with a $283.00 price target. Do the math. That’s an almost 70% upside.
Many other analysts since April have set encouraging price targets. Still, the most notable is Berenberg Bank BUY rating and street-high target of $350.00. That more than doubles the stock with a 110.06% upside.
TipRanks notes that 11 Wall Street analysts offered 12-month price targets for BioNTech SE in the last 3 months. It has a street-high forecast of $350.00, as we mentioned. With a low of $168.00 and an average of $224.27, BNTX has an average 34.60% upside from July 13, 2022’s close of $166.62.
BNTX’s year-to-date low and high are $117.08 and $263.95, respectively.
Vista Outdoor Inc. (NYSE:VSTO)
After touching a 52-week low, this outdoor sports play got an upgrade that could see its stock nearly double.
Admittedly, Vista Outdoor Inc.’s 2022 chart is atrocious. It began the year at $52.69 and has been in free fall since. Yet, with a nearly oversold RSI, excellent fundamentals, and a recent price target seeing the stock nearly doubling, VSTO not only offers some of the most profound value in the market. It provides some of the most mouth-watering upsides.
There is a reason why management has been aggressively buying back shares. Perhaps they see the upside, too, as one of the best stocks to buy now.
Outstanding Fundamentals and Deep Value
Are people just never going to go outside again? We’re neck deep in the summer, and this outdoor sports and recreation stock is trading at one of the deepest discounts in this market.
Forget for a second that the stock’s shed nearly half of its value this year. Its cash flows can sufficiently cover interest payments, and its margins depict a financially sound and well-managed company.
First, its 8 out of 9 Piotroski Score indicates it has healthy Liquid Balance Sheets, Profitability, and Operating Efficiency.
Consider the fact that the Company also boasts a
However, these margins do not even scratch the surface of how undervalued this stock is. Its valuation, first and foremost, implies a mind-blowing 17.9% free cash flow yield.
Second, almost all of its valuation multiples confirm the story of this being one of the most undervalued stocks in the market today. Consider the following:
- 2x trailing P/E
- 5x forward P/E
- 04 PEG
- 4x price-to-book
- 5x trailing price-to-sales
- 5x forward price-to-sales
A Beaten-Down STRONG BUY Which Could More Than Double
Recent coverage from MKM Partners points to a 98.82% upside for VSTO, which is outstanding in its own right. On July 13, 2022, MKM initiated a BUY rating on the stock with a $54.00 target.
Yet there could be even more upside than this.
VSTO currently has a street-high price target of $63.00, a low of $51.00, and an average of $55.25, representing a 103.42% upside from July 13, 2022’s $27.16 close.
TipRanks sees VSTO as one of the best stocks to buy now. The financial research platform scores it a STRONG BUY based on 5 Wall Street analysts offering 12-month price targets for VSTO in the last 3 months. Of these 5 analysts, 4 rate is a BUY compared to just 1 a HOLD and 0 a SELL.
VSTO’s year-to-date low and high are $26.03 and $52.69, respectively.