Caterpillar’s Potential 2021 Gains and AstraZeneca Vaccine’s Boosted Effectiveness
With a COVID vaccine being distributed around the country and the S&P 500 staying mostly green over the past few months some investors are eyeing stocks that move in tandem with economic rebounds, most commonly known as “cyclical stocks”. One of these investments is Caterpillar, a construction giant and one of the largest machinery manufacturers in the world.
Caterpillar’s sales have recently bottomed and with the prospective re-opening of the economy in 2021 many investors think caterpillar will be turning a positive. With Caterpillar being a company that has prioritized investor dividends in the past, this potential cash flow is particularly lucrative for many. Despite this many naysayers believe that this recovery may be weaker than the rest, it being a unique situation, and that much of the rebound is already priced in through investor speculations.
AstraZeneca’s CEO Pascal Soriot has revealed new data indicating their vaccine is just as effective as Moderna’s and Pfizer’s and can protect roughly 95% of patients. This is a major boost from prior ratings that left the Vaccine behind competitors at an average effectiveness of 70%.
This may seem like just another player added to a stalemate, but AstraZeneca vaccine is supposed to be both easier and less expensive than the Pfizer and Moderna vaccines, making it especially lucrative for developing countries. With this good news there will be some delay, with FDA approval taking time and vaccine distribution’s supply chain and logistics proving complex and time consuming.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.