2 Cheap Stocks to Buy Right Now
In today's struggling market, it isn't too difficult to find stocks that have had a difficult past 10 months, and that makes it an excellent time to shop for great stocks that are on sale. Of course, just because a company's shares are down does not necessarily mean they are worth buying. But some corporations seem to be trading at more than reasonable levels given their prospects. Let's look at two examples investors should consider: Novavax (NASDAQ: NVAX) and Netflix (NASDAQ: NFLX).
Can a company that isn't yet profitable be considered "cheap?" In my view, the answer is yes, and Novavax is a good example. Although there is still red on the bottom line, the biotech is generating revenue from its coronavirus vaccine, Nuvaxovid. What's more, Novavax's revenue guidance of $2 billion for this year currently exceeds its market cap of $1.8 billion.
The bears will reply that Novavax's revenue will drop starting next year. This is also true. The demand for all vaccines and medicines for the coronavirus will decrease in 2023, harming Novavax's top line. Even so, the biotech will continue generating some sales from Nuvaxovid as it has been approved or authorized as a booster option in various countries, including the U.S. and the U.K.
Source Fool.com
