The Public Health Agency of Canada said on Friday evening Moderna Inc.’s (NASDAQ:MRNA) covid-19 vaccine triggered a higher rate of heart inflammations after administering the second dose. The agency also said Pfizer Inc. (NYSE:PFE) and BionTech’s covid vaccine had fewer cases of heart inflammation.
Moderna shares opened Monday down nearly 4% following the weekend report. The stock is also facing pressure from the news about Merck & Co Inc.’s (NYSE:MRK) covid-19 pill, which sent several vaccine manufacturers crushing. Monday’s decline adds to Moderna’s double-digit decline on Friday, thereby creating an opportunity for a rebound.
Is it time to buy or sell MRNA?
From an investment perspective, Moderna shares are trading at a reasonable P/E ratio of 40.91. Moreover, its forward P/E ratio of 12.59 makes the stock attractive to value investors.
However, analysts expect Moderna’s earnings per share to fall by more than 26% this year before rising at an average annual rate of 16.80% over the next five years.
Therefore, long-term investors could also find the stock exciting ahead of its growth story.
Source – TradingView
Moderna finds support at 100-day MA
Technically, Moderna shares appear to be trading within a descending channel formation in the intraday chart. As a result, the stock has plummeted closer to the oversold conditions of the 14-day RSI.
However, it also appears to have found support from the 100-day moving average, creating an opportunity for a rebound. Therefore, investors could target potential rebound profits at approximately $373.60, or higher at 439.00.
On the other hand, if the stock extends the current downward movement, it could find support at $273.74, or lower at $199.13.
It could be time to buy the pullback
In summary, Moderna shares appear to have recently plunged, creating an exciting opportunity for a rebound. Moreover, the stock trades at an exciting forward P/E of just 12.59, making it attractive to investors.
Therefore, now could be a good time to buy the stock ahead of a potential rebound.
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