Rather than wowing speculators with promises of a scientific breakthrough, Emergent BioSolutions' (NYSE: EBS) coronavirus strategy positions the company as the go-to resource for vaccine manufacturing support. Aside from its ever-increasing number of contract manufacturing agreements with major industry players and rising stars, the company is also developing coronavirus therapeutics of its own, leveraging its core competitive advantages in manufacturing.
With its stock surging this year, Emergent is a potentially appealing option for healthcare investors rounding out their COVID-19 portfolios. That said, some investors may balk at its relatively thin profit margin of 6.14%, weak year-over-year quarterly revenue growth of only 1%, and lack of consistent earnings growth over the past year. These concerns are valid, but taking a closer look at where the company is experiencing growth will clarify its short-term prospects as a competitor in the coronavirus market.
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