Got $7,000? 2 Stocks Popping This Year
Amid a shaky market in 2022, Veru (VERU) and Chevron (CVX) are two stocks that have popped, but is it too late to add them to your portfolio?
Veru
Veru is one of the few hot stocks this year that has beaten the market by quite a margin.
The pharmaceutical company’s major catalyst was its COVID-19 drug, sabizabulin. The hype surrounding this drug, intended for high-risk, hospitalized COVID-19 patients, caused Veru’s stock to skyrocket by almost 3x year to date.
In June, Veru applied for Emergency Use Authorization (EUA) after its phase 3 trials showed its latest drug is effective in reducing death among hospitalized patients.
The danger? If the FDA doesn’t grant sabizabulin EUA, Vera’s stock could drop as quickly as it climbed. So, there is some risk here. However, there is more to Veru than COVID vaccines and treatments.
Veru already generates revenue from another unique product, the FC2 Female Condom. As reported in the company’s Q2 2022 earnings release, year to date, U.S. prescription net revenues for this product climbed by 19% to $23.2 million from $19.4 million.
In its Q3 2022 report, Veru shared its plans to send 120 million female condoms to the Republic of South Africa over the next three years. Veru is currently manufacturing its first order of units under this tender award.
As of now, Veru isn’t profitable – high R&D costs are to blame. So, if you aren’t one to take a risk, this may not be your best growth stock bet. With that said, if EUA for sabizabulin is granted, Veru stock still has plenty of upside to reward those who took a chance.
Chevron
Energy stocks have caught the attention of some big names in the investing world, including Buffett. For the first time in a century, the energy sector accounts for over 10% of Berkshire Hathaway’s invested assets. Chevron is one of the stocks benefiting from high oil and natural gas prices and is a safer option for risk-averse investors.
Since bottoming out in 2020, Chevron stock has been steadily increasing; over the past year, shares have increased by more than 64%. Although this industry can be volatile, Chevron has reported a profit in three of the past four years (2020 being the exception).
Last quarter, in particular, was impressive; the gas giant reported earnings of $11.6 billion, compared with $3.1 billion in Q2 2021.
Earlier in the year, oil was more than $120 per barrel. However, these prices weren’t sustained. Still, prices are relatively high and the price per barrel is around $93 as of this writing.
Over the long term, prices will likely drop even further as production ramps up and demand stabilizes. But that shouldn’t scare Chevron investors. Even during the years when the price of oil was low, Chevron was profitable.
Another reason investing $7,000 into this stock makes sense is the company’s quarterly dividend of $1.42 per share. You could potentially benefit to the tune of around $245 in annual dividend income based on current prices.
Is Now the Time to Buy Shares of VERU or CVX?
If you have your eyes on Veru, authorization decisions for sabizabulin shouldn’t take long in the U.S., EU., and U.K. The company is ready to meet the anticipated demand, and is expecting to produce enough doses to treat around 250,000 patients per month worldwide. If the decision is in Veru’s favor, sabizabulin could become the company’s flagship product overnight, and the stock would likely soar.
If the energy sector excites you, there are many short- and long-term reasons to invest in Chevron. The company is benefiting from high oil and natural gas prices, so there is some downside risk In the near term. For this reason, and because of Chevron’s strong dividend history, it’s more of a stock built as a long-term investment.
