When the history books are written, 2020 will be the year of the COVID-19 pandemic. However, 2021 could very well be considered the year of the COVID-19 vaccine. Two vaccines are already administered to Americans. More vaccines could be on the way in the not-so-distant future.

Every crisis presents an opportunity. This is true now for investors, with several stocks of coronavirus vaccines offering huge potential. However, some alternatives are better than others. Here are three COVID vaccine stocks that smart investors are buying for 2021.

1. Pfizer

There aren’t many smarter investors than Warren Buffett. And Buffett’s Berkshire Hathaway bought one and only one stockpile of COVID vaccines in recent months. This stock is Pfizer (NYSE: PFE). I think other investors will not go wrong following the example of the Oracle of Omaha in this case.

Pfizer and its partner BioNTech could rake in more than $ 14 billion next year from sales of the BNT162b2 coronavirus vaccine based on the estimate by Bernstein analyst Ronny Gal. With Pfizer pocketing half of those sales, the COVID vaccine could be a good catalyst for the big pharmaceutical actions.

But BNT162b2 is just one of Pfizer’s many growth engines. Topping the list are the anticoagulant Eliquis, the cancer drugs Ibrance and Xtandi, the autoimmune disease drug Xeljanz and the rare disease drug Vynaqel. The big drugmaker also has another promising vaccine on the way with the 20-valent pneumococcal conjugate vaccine PF-06482077.

Pfizer expects it can generate annual growth in adjusted earnings per share of around 10% over the next five years. With the company’s strong dividend (which currently pays over 4%), the stock should be in an excellent position to generate above-market returns. This is exactly what smart investors like Warren Buffett want.

2. Johnson & Johnson

At the start of the fourth quarter of 2020, Johnson & johnson (NYSE: JNJ) Ranked 29th most popular stocks among hedge funds. This made the health giant the premier stockpile of COVID vaccines for hedge fund managers.

I think Johnson & Johnson is the the safest bet of all among COVID vaccine stocks. The size and diversification of the company gives it rock-solid stability that no other vaccine manufacturer can achieve. Like Pfizer, J&J also offers an attractive dividend.

What about J&J’s coronavirus vaccine? Don’t be surprised if he becomes a huge winner next year. The company plans to announce interim efficacy results from a large, late-stage study in January. If all goes well, the vaccine could get Emergency Use Authorization (EUA) and be on the US market in February.

J & J’s vaccine has some major advantages. Perhaps more importantly, it only requires one dose. All other major COVID vaccines require two doses. J&J is also making its vaccine available at cost during the pandemic. Once the pandemic is over, the company will be looking to make a profit – and it is entirely possible that those profits will be significant.

3. Novavax

Smart investors look for great risk / reward propositions with the stocks they buy. I think Novavax (NASDAQ: NVAX) ranks among the best stocks of COVID vaccines on this front.

On the one hand, Novavax’s market capitalization of around $ 8 billion is only a fraction of other leaders in the coronavirus vaccine race. And that’s despite biotech stocks skyrocketing over 3,000% so far this year. Novavax also has a very promising COVID vaccine, NVX-Cov2373. He plans to announce the results of an advanced-stage UK study in early 2021 and hopes to start an advanced-stage study in the US in a few weeks.

Better yet, Novavax has another excellent candidate who is likely to get regulatory approvals. The company reported overwhelmingly positive results from an advanced-stage study of the investigational influenza vaccine NanoFlu earlier this year. At least one analyst believes NanoFlu could generate maximum annual sales of up to $ 1.7 billion if approved.

If Novavax were to market both NVX-Cov2373 and NanoFlu, I wouldn’t be surprised if its shares would double or more. Novavax is the riskiest of these three stocks of COVID vaccines, but it could be by far the biggest winner if all goes well.