As the stock market continues to surge, not every company is reaping the benefits. Despite the overall bullish trend, some stocks have seen significant declines over the past year. However, two Motley Fool contributors believe they have identified hidden gems that could potentially bounce back and deliver substantial returns to investors.
One such company is Pfizer, which has seen its stock price plummet by 34% over the last 12 months. The pharmaceutical giant was a standout performer during the height of the pandemic, thanks to its successful COVID-19 vaccine and treatment. However, as demand for these products wanes and the company faces patent expirations for some of its blockbuster drugs, Pfizer’s earnings have taken a hit.
But all is not lost for Pfizer. The company is undergoing a transition phase, with a focus on in-house product development and a recent acquisition in the oncology space. Last year, Pfizer received nine approvals for new products, with expectations of generating $20 billion in potential revenue by 2030. The acquisition of Seagen has also bolstered Pfizer’s oncology portfolio, with multiple potential blockbusters in the pipeline.
Similarly, Moderna, another COVID-19 vaccine maker, has seen its stock price drop by 35% over the past year. The company is betting big on its respiratory syncytial virus (RSV) vaccine mRNA-1345, with expectations of returning to organic sales growth in 2025. Moderna also has a promising pipeline of late-stage programs, including a combination flu/COVID-19 vaccine and cancer vaccine.
While there are no guarantees in the stock market, both Pfizer and Moderna appear to have strong growth prospects in the coming years. Investors may want to consider these stocks as potential opportunities for significant returns.
