The Vaccine Juggernauts Rely on This Company

Pharmaceutical giant Pfizer (PFE) is drowning in cash...

And it's a direct result of the COVID-19 pandemic.

Last week, Pfizer raised its full-year sales forecast for its COVID-19 vaccine to $36 billion... an increase of 7.5%. This estimate reflects that it's on target to deliver about 2.3 billion doses, out of roughly 3 billion it expects to make this year.

Simply put, demand for Pfizer's vaccine has been unparalleled.

You see, out of more than 190 million Americans who have been fully vaccinated, about 55% got the Pfizer vaccine. (Most other Americans received the vaccine from Moderna.) And it's not just the U.S...

According to Pfizer Chairman and Chief Executive Officer Dr. Albert Bourla, more than 75% of the company's vaccine sales from the most recent quarter came from outside the U.S.

Given how many countries have been ordering Pfizer's vaccine, it has quickly become one of the best-selling products in the company's history.

For the most recent quarter, Pfizer and its partner BioNTech pulled in $13 billion from the vaccine alone... Total sales for the quarter totaled $24.1 billion, more than double what it was last year.

Pfizer's COVID-19 vaccine also recently became the first in the U.S. to be authorized for children as young as five years old.

Now, Pfizer is drowning in cash. The pandemic is still seeing surges all over the world, so the boost in sales shouldn't stop anytime soon.

The truth is, this pandemic can go on for much longer than people think. And as we continue to battle it, juggernauts like Pfizer and Moderna aren't the only companies that will profit...

If you study the past 130 years of global pandemics, you'll find they typically consist of two to four waves, each spanning about two or three years.

Given how many people are still contracting COVID-19, this pandemic will likely be one of the longer ones in history.

Take a look at this chart. It shows the COVID-19 cases around the globe...

All of this means that companies making COVID-19 vaccines, tests, and treatments should continue making profits for many months to come.

One company is positioned to ride these tailwinds... And it's not in the headlines like Pfizer or Moderna. But it has done as much for folks through the pandemic as any company...

Specifically, I'm bullish on life-sciences company Thermo Fisher Scientific (TMO).

When I say "life sciences," I'm talking about companies related to the research side of medical care... pharmaceutical and biotech companies that develop new treatments, and the suppliers they rely on.

Thermo supports life sciences in nearly every way. It's an innovator with a long history. It develops diagnostic tests along with analytical instruments and other lab technologies.

Like Pfizer, Thermo has been getting a big boost from the pandemic.

You've probably heard about – or have even taken – a polymerase chain reaction ("PCR") test at some point over the course of the pandemic. Thermo developed a PCR test kit and has produced more than 650 million tests as of September.

This is not simply a case of a company that made a product and got lucky, though. By CEO Marc Casper's own admission, if you had known a surge in PCR testing was coming, you wouldn't have bet on Thermo as the winner.

But the company reacted quickly, developed great products, and mobilized to dominate the market.

Thermo also helps produce COVID-19 vaccines. It touches on the critical aspects of the vaccine process. According to Casper...

  • Thermo's bioproduction business includes cell cultures and single-use technologies – these are used in rapid turnarounds for development of vaccines.
  • It produces enzymes and nucleotides for ingredients in the vaccines.
  • It makes resins for purification that are necessary for mRNA products.
  • Thermo will manufacture some of the vaccine, along with the packaging known as "sterile fill finish."
  • Thermo is the largest manufacturer of ultra-low-temperature freezers – which you may have heard are necessary to keep mRNA vaccines at negative 94 degrees Fahrenheit for distribution.

Millions of people worldwide still need to get vaccinated. And given that demand for vaccines and testing will remain strong for the foreseeable future, Thermo is a solid way to play these trends.

Plus, Thermo is a company you want to own regardless of this pandemic... or any future ones. It's a true long-term capital compounder.

Since 1980, shares of Thermo have returned 14.2% a year. That crushes the S&P 500 Index, which has only increased 9.2% a year in that time frame.

If you aren't a subscriber to Retirement Millionaire (where I first recommended the stock in 2020) and you don't own shares of TMO already, I suggest you check it out...

TMO deserves a spot in any portfolio.

Here's to our health, wealth, and a great retirement,

Dr. David Eifrig

Editor's note: The pandemic has disrupted our economy. We've seen massive speculation and soaring inflation. And while some folks will lock in big gains in the years ahead, others won't be so lucky... That's why Doc has put together a playbook with the exact investments you need to own for this "new inflationary era," to help you protect and potentially grow your nest egg during the times ahead. Learn how to gain access to it here.

Further Reading

"Most investors expect stocks to slump as rates rise," Steve writes. While we know that the Melt Down will happen eventually, history tells us that stocks could still rally after rates rise... For the full story, check out Steve's two-part essay here and here.

Investing in the future of medicine can be tricky. But thinking like a classic venture capitalist can make finding winners that crush the competition easier. All you have to do is use these clues... Read more here: Use These Simple Clues to Find Winning Biotech Stocks.

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Market Notes

A 'WORLD DOMINATOR' WITH A HISTORY OF REWARDING SHAREHOLDERS

Today's chart shows why we love investing in the world's best companies...

Longtime readers are familiar with what we call "World Dominators." These companies boast global brands and strong financials, which place them at the top of their industries. And they're powerful enough to withstand any market environment. Just look at today's company, for example...

Automatic Data Processing (ADP) is one of the world's largest human-resources companies. It operates in more than 140 countries and offers everything from payroll and recruiting services to employee benefits programs and insurance. Through good times and bad, businesses depend on Automatic Data. And that bodes well for sales... In the most recent quarter, year-over-year revenue grew 10% to $3.8 billion. And on such strong growth, the company raised its full-year guidance and just boosted its dividend for the 47th consecutive year.

As you can see, ADP shares are in a long-term uptrend. They're up roughly 180% over the past five years, including dividends... Plus, the stock just reached a fresh all-time high. This just goes to show the power of investing in a World Dominator...