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TOP3 most traded stocks during September: Moderna, Tesla and Virgin Galactic

Once again, the bears rule the US markets and stocks have resumed their downward trend after a summer rally. Highly volatile stock markets can be taken advantage of with stock CFDs, which our clients know and it shows. We bring you a summary of the top 3 most traded stocks at Purple Trading for September. What is behind their popularity and what is the outlook for the future? You can read all about it in today's article.

Moderna - on its way to demise?

Moderna remains a constant favourite among our clients. Looking at the volatility of its shares, it is not surprising. Practically exactly one year ago, the shares of this vaccine manufacturer hit the USD 500 mark, but since then they have fallen in a really spectacular manner. And it is now falling as quickly as it had skyrocketed during the peak of the pandemic. Moderna shares are now even near its one-year low. Company is paying a bit of a price for the fact that investors consider it a "one trick pony", a company that has virtually only one product. The question is, what does the future hold for Moderna?

According to fundamentals, Moderna currently appears to be highly undervalued. For example, the P/E ratio (the ratio of share price to earnings per share) is around 4, which is extremely low. However, such a low value already signals that something may not be right with the company. Moderna has profited highly from sales of vaccines and booster shots and still registers high demand for the products. However, the world is slowly forgetting the coronavirus, or at least learning to live with it.

Even high profits and order numbers are not impressing investors in the current bear market. With no new products in sight, they see Moderna as doomed. So it could seem that the best days are over for this vaccine manufacturer. And even though last year, it posted a massive profit of over $12 billion, since then, every quarterly profit has fallen. And that is something investors don't like to see.

Chart 1: Shares of Moderna in the MT4 platform on the H4 timeframe along with the 50 and 100 day moving averages


The positive news is that Moderna is well equipped financially. This gives hope for further progress in research on other vaccines. However, without any breakthroughs in other product development, Moderna stock is unlikely to look back to yearly highs anytime soon. Despite the positive news on orders for booster shots in the US, the company's stock is likely to remain highly volatile. The US government has ordered 170 million booster shots, of which Moderna is expected to deliver 70 million by the end of the year.

Tesla - a new product on the horizon?

Another darling of Purple Trading's clients is the Californian car company Tesla. The latter also deserved attention last month because of a 3:1 stock split. Tesla has been doing relatively well since then, as evidenced by the fact that its stock has added 4%. Meanwhile, the S&P 500 has written off almost 7% over the same period. Tesla's capitalisation is still just under USD 1 trillion, making it the fifth largest company in the US market. With a P/E ratio in excess of 100, this is a rare feat.

What is the secret of Tesla's success? Tesla and Elon Musk's army of car lovers have practically created a cult around the automaker, making Tesla stock a fanatical buy. All they need is news that next week Tesla will unveil a prototype robot called Optimus, whose name will amuse fans of Transformers franchise in particular. The robot was supposed to make factory work easier and eventually find its way into our homes.

However, Tesla also has a large number of opponents, not for nothing it is one of the most shorted stocks in the US market. In fact, for a long time, Tesla was the most shorted stock ever. However, it was stripped of that "primacy" by Apple last week. Skeptics are calling for Tesla to focus more on developing the cars themselves, rather than the expensive robots that Tesla would deliver as another product to homes. In any case, we'll know more next Friday, which many investors are waiting for. However, robot production could be the next big thing and could bring in interesting revenues in the future. After all, Elon Musk has proven several times that he can do almost anything.
 

Chart 2: Tesla shares in the MT4 platform on the M15 timeframe along with the 50 and 100 day moving averages


Positive news are coming about car production, especially from Germany, where the giga-factory is already in full operation. Tesla has announced its intention to double its sales in Germany compared to 2021. Last year, Tesla sold 40,000 cars in Germany and plans to double that this year. If it succeeds, it would overtake Toyota in the ranking of the best-selling automakers in Europe's most important market. On the positive side, demand for the cheaper Model 3 and Y remains very strong, so Tesla is not necessarily pushing to introduce new models.

However, it’s not all just unicorns and rainbows. Aside from the uncertainty caused by inflation, there is one big question mark hanging over Tesla - Elon Musk's legal battle with Twitter. Over the past few years, we've been able to track Tesla stock rising and falling with Elon Musk's performance and excesses. The battle with Twitter may take a lot of power and financial resources away from him, which may then significantly affect Tesla itself. The trial is expected to begin in mid-October. One thing is certain - Tesla will continue to be one of the most sought-after companies.

Virgin Galactic - interesting speculation?

Virgin Galactic Holdings shares have been favoured by shorting speculators in particular since mid-2021. By the end of last June, Virgin Galactic shares were hitting the $60 mark. Since then, they've been on a virtual freefall to the downside. They now hover around just $5. However, the company's capitalization is still over USD 1 billion and it seems that shorting speculators may still have "room to take". Indeed, Virgin Galactic's business of providing space trips for the rich could be described as highly cyclical. In a bear market and high inflation, everyone will think carefully about whether they really need to go to space now or whether they should wait a while longer. Moreover, it is a surprisingly competitive environment. The biggest competitors are Jeff Bezos's Blue Origin and, to some extent, Elon Musk's SpaceX - both of whom certainly have deeper pockets than Virgin founder Richard Branson. Moreover, neither of these companies is on the stock markets.
 

Chart 3: Shares of Virgin Galactic in the MT4 platform on the M15 timeframe along with the 50 and 100 day moving averages


Also, the outlook for the company's economic results, which is still delaying its first commercial flight, is not very positive. As currently it is generating virtually no revenue. On top of that, Virgin has to invest in development on a large scale thus multiplying its losses. The first flight with paying passengers is not due to take place until the second quarter of next year. At the moment, however, this seems like a fairly optimistic target. Any news of a further postponement of the first flight would be very negative for the shares. But of course the reverse is also true. In the event of a successful flight during the second quarter, it would not be surprising to see the stock shoot up by tens of percent. For investors who are willing to accept a higher level of risk, Virgin

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