Back to top

Image: Bigstock

Here's Why Novavax (NVAX) Fell More Than Broader Market

Read MoreHide Full Article

In the latest close session, Novavax (NVAX - Free Report) was down 1.99% at $8.39. This change lagged the S&P 500's 0.1% loss on the day. Elsewhere, the Dow saw an upswing of 0.57%, while the tech-heavy Nasdaq depreciated by 0.33%.

The vaccine maker's stock has dropped by 10.08% in the past month, falling short of the Medical sector's gain of 0.86% and the S&P 500's gain of 2.57%.

Analysts and investors alike will be keeping a close eye on the performance of Novavax in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.26, indicating a 65.79% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $67 million, down 20.72% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.68 per share and a revenue of $1.03 billion, indicating changes of +317.89% and +51.52%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Novavax. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% higher. Novavax is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Novavax is holding a Forward P/E ratio of 3.19. This expresses a discount compared to the average Forward P/E of 19.95 of its industry.

It's also important to note that NVAX currently trades at a PEG ratio of 0.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.65.

The Medical - Biomedical and Genetics industry is part of the Medical sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Novavax, Inc. (NVAX) - free report >>

Published in