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Novavax (NVAX) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest close session, Novavax (NVAX - Free Report) was down 4.02% at $9.08. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 0.71%.

Shares of the vaccine maker have appreciated by 19.75% over the course of the past month, outperforming the Medical sector's gain of 5.9%, and the S&P 500's gain of 4.26%.

Market participants will be closely following the financial results of Novavax in its upcoming release. It is anticipated that the company will report an EPS of -$0.26, marking a 65.79% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $67 million, down 20.72% from the year-ago period.

NVAX's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $1.03 billion. These results would represent year-over-year changes of +317.89% and +51.52%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Novavax. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Novavax currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Novavax is at present trading with a Forward P/E ratio of 3.53. This expresses a discount compared to the average Forward P/E of 19.52 of its industry.

Meanwhile, NVAX's PEG ratio is currently 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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