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Novavax (NVAX) Declines More Than Market: Some Information for Investors

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Novavax (NVAX - Free Report) ended the recent trading session at $8.68, demonstrating a -2.2% change from the preceding day's closing price. This change lagged the S&P 500's 0.55% loss on the day. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.95%.

Coming into today, shares of the vaccine maker had gained 17.95% in the past month. In that same time, the Medical sector lost 0.2%, while the S&P 500 gained 3.64%.

Market participants will be closely following the financial results of Novavax in its upcoming release. In that report, analysts expect Novavax to post earnings of -$0.26 per share. This would mark year-over-year growth of 65.79%. Alongside, our most recent consensus estimate is anticipating revenue of $67 million, indicating a 20.72% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.68 per share and revenue of $1.03 billion, which would represent changes of +317.89% and +51.52%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Novavax. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 past month, the Zacks Consensus EPS estimate has shifted 0.75% upward. Novavax is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Novavax is currently exchanging hands at a Forward P/E ratio of 3.31. This signifies a discount in comparison to the average Forward P/E of 19.47 for its industry.

It's also important to note that NVAX currently trades at a PEG ratio of 0.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical - Biomedical and Genetics industry was having an average PEG ratio of 1.67.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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