Senate Democrats recently proposed $21B in new COVID-19 funding — here are 3 healthcare stocks that could be poised to pop

The healthcare sector received a lot of investor attention during the early days of the COVID-19 pandemic. Interest in the space has waned a bit in recent months, but a new catalyst might be on the way.

Top Senate Democrats recently proposed a new $21 billion emergency supplemental funding bill to prepare for the next phase of the pandemic and other emerging diseases.

The bill would allocate $16 billion to the Public Health and Social Services Emergency Fund for tests, vaccines, medical supplies, and research. Another $5 billion in emergency funding is aimed to help other countries fight the coronavirus.

“Our efforts to stop this disease abroad to protect us here at home are quickly running out of funding, and we are running out of time to act,” says Patrick Leahy, Senate Appropriations Committee Chairman in a statement.

The bill could give investors a new reason to check out companies that make vaccines, develop treatments, or manufacture antigen tests. Here’s a look at three of them.

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Pfizer (PFE)

With a history that can be traced all the way back to 1849, Pfizer is a mega-cap pharmaceutical and biotechnology company. The pandemic made it even more well-known globally.

Over 3.6 billion Pfizer-BioNTech COVID-19 vaccines have been shipped to 180 countries worldwide. Meanwhile, Pfizer is also the developer of Paxlovid, an oral antiviral pill used to treat COVID-19.

The company reported strong results this earnings season. For Q2, Pfizer generated $27.7 billion of revenue, representing a 47% increase year-over-year. Adjusted earnings per share came in at $2.04, up 92% from the year-ago period.

The stock, however, is not immune to the market sell-off in 2022. Year-to-date, Pfizer shares have slipped 13%.

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JPMorgan analyst Chris Schott has a ‘neutral’ rating on Pfizer and a price target of $57 — roughly 15% above where the stock sits today.