The coronavirus pandemic has had a highly negative impact on most stocks in the market, but there are some stocks that have actually rocketed under the current circumstances. One such stock is that of Co-Diagnostics Inc (NASDAQ:CODX), which has rallied by as much as 1450% since January and has emerged as one of the stocks to watch.
The stock’s performance is particularly remarkable considering the fact that the economy has gone into recession. Much of the bullishness is centered on the company’s coronavirus tests, and it could be worthwhile to figure out if there is any more upside to the Co-Diagnostics stock.
Testing has been one of the most in-demand services at the time of the coronavirus pandemic, and that has resulted in the strong Co-Diagnostics stock rally. On top of that, the company revealed on May 1 that its coronavirus test recorded perfect sensitivity and specificity scores in detections tests.
That resulted in another 19% rally in the stock price. Co-Diagnostics was a penny stock at the start of the year, and it might seem unlikely that the stock will continue to rise; however, the situation is such that the stock might just continue to deliver gains in the near term.
The demand for testing is going to continue in the near term, and as a matter of fact, experts like Dr. Fauci have also warned about the second wave of outbreak later on this year. In such a situation, Co-Diagnostics is expected to see a further rise in the demand for its tests, and investors might expect to see further upside in the stock.
If a second wave does come, it is unlikely that the government is going to opt for another shutdown. Instead, the larger focus might be on widespread testing, and that will see a spike in demand for Co-Diagnostics’ tests. Hence, the Co-Diagnostics stock may eventually emerge as a long term investment, and investors could keep an eye on it.