Medical supplies are being taken care of when Pfizer starts launching a Covid vaccine

Healthcare stocks are in focus after Pfizer began shipping its Covid vaccine to the United States and the first vaccines were received this week.

Not only the companies that develop and deliver vaccines against Covid have caught the attention of one market analyst. Boris Schlossberg, managing director of FX strategy at BK Asset Management, said French pharmaceutical company Sanofi could deserve a second look.

Sanofi “enjoys a very, very extensive portfolio and it is also a leader in vaccine manufacturing, not necessarily Covid but only vaccine manufacturers, and I think the whole move towards vaccination due to Covid awareness has really grown enough and Sanofi will benefit after that the next two years, ”Schlossberg told CNBC’s“ Trading Nation ”on Monday.

While investors are waiting for those tailwinds to lift the shares, Schlossberg said its current fundamentals and pipeline are also making Sanofi a solid cure.

“It’s also just a very, very stable stock. It has a 3.8% dividend, which makes it very attractive in this environment, and it has one very good drug, called Dupixent, that basically allows treatment of eczema in young people. children but it is also indicated as a cure for asthma. And I think that could be a very big drug, “Schlossberg said.

The U.S. Food and Drug Administration in May approved Sanofi’s Dupixent for treating childhood dermatitis.

Sanofi shares have weakened the broader healthcare sector this year. The stock decreased by 8% compared to a 10% gain for the health care XLF ETF.

Ari Wald, head of tea analysis at Oppenheimer, is betting on one group of health stocks instead of the entire sector.

“It was this story of two health concerns where what was a broader movement earlier in the year became much more disparate where you have a sector of the poor and needy,” Wald said during the same segment “Nation Trading”. “We would advise going underweight heavyweight farm versus overweight position in smallweight biotechnology.”

The Russell 2000 biotech library index has grown 57% so far this year. The S&P 500 pharmaceutical subsector, which includes Pfizer and Merck, is up just 3% during the same stretch. Wald’s small-cap biotech purchasing ideas include Exact Sciences, Iovance Therapeutics and Vericel.

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