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Novavax (NVAX) Gains As Market Dips: What You Should Know

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Novavax (NVAX - Free Report) closed at $146.62 in the latest trading session, marking a +0.87% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.85%, and the tech-heavy Nasdaq gained 0.43%.

Coming into today, shares of the vaccine maker had gained 82.38% in the past month. In that same time, the Medical sector gained 4.73%, while the S&P 500 gained 6.78%.

Investors will be hoping for strength from NVAX as it approaches its next earnings release. The company is expected to report EPS of -$0.36, up 78.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.50 million, up 1254.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.44 per share and revenue of $618.50 million. These totals would mark changes of +198.73% and +3214.19%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NVAX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 653.05% higher. NVAX is currently a Zacks Rank #3 (Hold).

Digging into valuation, NVAX currently has a Forward P/E ratio of 26.73. For comparison, its industry has an average Forward P/E of 26.76, which means NVAX is trading at a discount to the group.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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