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Novavax (NVAX) Surges 19.3%: Is This an Indication of Further Gains?

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Novavax (NVAX - Free Report) shares soared 19.3% in the last trading session to close at $53.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 39.4% loss over the past four weeks.

Share price of Novavax is rising in anticipation of a potential approval for its COVID-19 vaccine candidate as it reaches the penultimate round, a review of NVAX's filing by the Vaccines and Related Biological Products Advisory Committee. A positive outcome will likely lead to the FDA authorization.

This vaccine maker is expected to post quarterly earnings of $3.33 per share in its upcoming report, which represents a year-over-year change of +209.2%. Revenues are expected to be $878.11 million, up 96.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Novavax, the consensus EPS estimate for the quarter has been revised 7.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NVAX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Novavax is part of the Zacks Medical - Biomedical and Genetics industry. Avidity Biosciences, Inc. (RNA - Free Report) , another stock in the same industry, closed the last trading session 5.6% higher at $15.10. RNA has returned -28.5% in the past month.

Avidity Biosciences, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.94. Compared to the company's year-ago EPS, this represents a change of -46.9%. Avidity Biosciences, Inc. currently boasts a Zacks Rank of #4 (Sell).


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