mRNA vaccine developer Moderna (MRNA) is climbing nearly 5% in early trading today after it was awarded about $590 million by the U.S. government's Department of Health and Human Services (HHS) on Friday.

 The Details of Moderna's Award

HHS reported that it had provided the drug maker with the funds in order "to accelerate the development of mRNA-based pandemic influenza vaccines and enhance (its) mRNA platform capabilities."

A scientist surrounded by vials and beakers in a modern laboratory, proudly displaying a vaccine.

However, the agency also stated that the award would allow MRNA to more quickly launch an mRNA influenza vaccine that can combat "strains currently circulating in cows and birds."

Information About Bird Flu in the U.S.   

Earlier this month, the first human death from a strain of bird flu known as H5N1 was reported in the U.S., and "dozens of people" in America have reportedly contracted it. Last year, it started infecting dairy cows for the first time.

On the positive side, however, it is not spreading between humans, and antiviral medicines already approved by the FDA have been effective against the illness. Moreover, most people only show minor symptoms after contracting it.

The Recent Price Action of MRNA Stock

In the last month, MRNA stock has fallen 14%, while it has sunk 37% in the last three months.

While we acknowledge the potential of MRNA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.