There are numerous methods for evaluating a stock’s potential. I normally look at biotech businesses’ pipelines, revenue projections, and numerous financial measures. Today, however, I’m going to look at something different: what other investors have to say about two specific stocks. And the easiest way to do so is to play the Motley Fool CAPS game. The wisdom of crowds is used in this stock-picking game to uncover outstanding assets. This is how it goes. Over a certain time frame, players guess which stocks will outperform or underperform the S&P 500. Then, in comparison to other players, CAPS assigns a score to these players based on their accuracy. It also assigns a score to each stock based on the amount of participants who believe it will outperform the S&P 500. A vital element to remember is that the game gives more weight to the opinions of the higher-rated participants. So let’s look at Vaxart (NASDAQ:VXRT) and Inovio Pharmaceuticals (NASDAQ:INO), two coronavirus vaccine companies that soared by more than 1,000 percent and 168 percent, respectively, last year using Motley Fool CAPS.
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1 out of 5 stars for Vaxart CAPS.
Vaxart’s investigational COVID-19 vaccine might be a game-changer, according to investors. Because the candidate is taken as a tablet, this is the case. Many individuals would be overjoyed if there was a method to get vaccinated against the coronavirus without having to take two injections. A room temperature stable tablet, on the other hand, offers easier and less expensive transit and storage. That’s a gain for healthcare systems, as well as a significant benefit in terms of getting vaccines to parts of the world where the “cold chain” isn’t as well built (or nonexistent).
What’s keeping the stock from getting a higher rating: Some investors were dismayed by Vaxart’s phase 1 clinical trial results. Despite this, the company is moving forward with a phase 2 trial for its COVID-19 vaccine candidate. As a result, Vaxart will have another chance to impress the investment community.
2 out of 5 stars for Inovio CAPS
What investors are likely to notice: Inovio recently completed enrollment in their investigational COVID-19 vaccine’s phase 2 trial. In addition, the company is working on novel vaccine candidates targeted at specific variations of concern.
What’s keeping the stock from getting a higher rating: The Food and Drug Administration put a temporary clinical hold on Inovio’s phase 2/3 trial in September. The hold on phase 2 was released in November, but the hold on phase 3 has yet to be lifted. That decision is on hold while the business responds to queries regarding the unique gadget needed to deliver the investigational vaccine. Investors may breathe a sigh of relief if the regulator removes this stumbling block.
Inovio is the winner.
Even stocks that haven’t received much fanfare from investors can nonetheless provide excellent profits. Over the last year, almost 30 one-star stocks in Motley Fool CAPS have gained 1,000 percent. Even Nevertheless, higher ranks are frequently associated with higher profits. Over the last year, 466 one-star equities have lost about 15% of their value. During that time, only 6% of the 465 two-star stocks fell. So, according to CAPS wisdom, the higher-rated Inovio has a better chance of double our money.

This post is the author’s own view, which may differ from a Motley Fool premium advice service’s “official” recommendation position. We’re a mishmash! Questioning an investing theory, even our own, encourages us to think critically about investing and make decisions that will make us smarter, happier, and wealthier.
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