My #1 stock in the race to fight COVID-19 is a classic picks-and-shovel play called Simulations Plus (SLP), which makes software that lets drug companies simulate tests of their products in the virtual world before undergoing human or animal testing, explains Eddy Elfenbein, editor of Growth Stock Advisor.

This is a big cost saver for drug companies. Simulations Plus helps streamline the R&D process by making it faster and more efficient. Not only is this cost effective, but it also helps drug companies in dealing with time-consuming regulatory hurdles.

In fact, there are times when the results from SLP’s tests have allowed companies to waive clinical studies. This means drug companies don’t have to deal with the time and expense of recruiting test subjects and analyzing test results. The cost savings are substantial. SLP’s software can be a big help for any company racing to find a vaccine.

The company recently established its StrategiesPlus COVID-19 ACT Program designed to speed consulting assistance to any organization involved in coronavirus research.

By using Simulations Plus’s software, drug companies can experiment with many variables like fine tuning dosage amounts. Companies can also see potential harmful side effects. Another important factor is that companies can identify treatments that aren’t beneficial.

In healthcare, cost control is a major issue. That’s why Simulations Plus’s products are in such heavy demand. Over the last six years, earnings per share have grown from 18 cents to 25 cents to 29 cents to 33 cents to 42 cents, and last year Simulations Plus made 48 cents per share.

I think the company has a good shot of making close to 54 cents per share for this fiscal year. If that happens, that would mean Simulations Plus doubled its profits in four years, and with no debt. This is a great company that's not well known and it is in a great position to help drug makers in defeating COVID-19.

Subscribe to Growth Stock Advisor here…