Buy Alert: Novavax Stock Is Heading Higher

Novavax (NASDAQ: NVAX) has had a phenomenal run since I bought shares in the fall. Overall my cost basis is $6 per share; right now the stock is trading hands at $48 per share.

What's fascinating, and a little scary, is that the dramatic stock increase has almost nothing to do with my original investment thesis. The reason why I bought Novavax: influenza. Novavax had a strong vaccine candidate in phase 3 trials, and the flu vaccine is a $5 billion market opportunity.

What I didn't know at the time was that COVID-19 would strike, putting much of the world into lockdown mode, and sending some small biotech stocks into the stratosphere. That's why shares have run up so high: Novavax has developed a potential vaccine for COVID-19, and it's starting clinical trials in humans.

Source Fool.com