Moderna Inc.’s stock has surged approximately 37% in the last month but has dipped around 15% year to date.

On Wednesday, the stock is trading around 7% higher.

Notably, there is no news to justify the movement. Over the last month:

The U.S. Food and Drug Administration (FDA) approved Moderna’s supplemental Biologics License Application (sBLA) for Spikevax, the company's COVID-19 vaccine, in children six months through 11 years of age who are at increased risk for COVID-19 disease.

Moderna ( MRNA ) revealed results from a Phase 3 efficacy study (P304) evaluating the relative vaccine efficacy (rVE) against influenza illness of mRNA-1010, the company's seasonal influenza (flu) vaccine candidate, compared to a licensed standard-dose seasonal influenza vaccine in adults aged 50 years and older.

mRNA-1010 achieved the most stringent superiority criterion prespecified in the protocol, with an rVE of 26.6% in the overall study population. Additionally, strong rVE was observed for each influenza strain contained in the vaccine, including A/H1N1 (rVE=29.6%), A/H3N2 (rVE=22.2%), and the B/Victoria lineages (rVE=29.1%).

The FDA expanded the approval of Moderna’s respiratory syncytial virus vaccine to adults aged 18-59 at increased risk for the disease.

Global healthcare stocks are now cheaper than they’ve been in decades, and money is slowly flowing back into the sector.

Also Read: Medical Groups Sue RFK Jr. For Assault On Science Over Unlawful COVID-19 Vaccine Rollbacks

Reuters notes that despite the low prices, investor interest remains weak due to growing uncertainty around U.S. drug pricing policies following Donald Trump’s return to the White House.

Concerns include the potential revival of “most-favored-nation” drug pricing rules and potential 200% tariffs on pharmaceutical imports, which cloud the earnings outlook for drugmakers in the U.S. market.

During the COVID-19 pandemic, investors heavily backed pharmaceutical stocks. However, in recent years, many have shifted their money into Big Tech, leaving healthcare stocks undervalued and overlooked.

Still, some investors are beginning to focus on long-term growth drivers—such as aging populations, advances in RNA therapies, and innovations in weight-loss and diabetes treatments—rather than short-term political risks.

Citing EPFR data, Reuters noted that healthcare funds have experienced net inflows since early 2024, reversing the outflows observed in 2022 and 2023. While this year’s inflows stand at $7.2 billion, they remain 41% lower than last year.

Despite signs of innovation, maturing drug pipelines, and a pick-up in mergers and acquisitions, healthcare stock prices have barely moved. Investors say whether this signals a buying opportunity or a value trap depends on when the policy uncertainty clears up.

Traditionally, healthcare stocks traded at a slight premium to global stocks due to their stable earnings and defensive appeal. But that advantage has faded amid political pressures and the market's growing preference for Big Tech.

In the past three years, U.S. healthcare has underperformed the S&P 500 by over 60 percentage points—making it the worst-performing sector. Its valuation has dropped to a near-record 27% discount compared to the S&P, down from being on par in 2023.

Currently, investors are still awaiting a clear catalyst. The ongoing policy uncertainty makes it tough to predict future earnings, though some hope for more clarity by the end of the year, which could also unlock more deal-making in the sector.

Price Action: MRNA stock is up 6.48% at $34.85 at the last check on Wednesday.

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