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Why Novavax (NVAX) Dipped More Than Broader Market Today

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In the latest close session, Novavax (NVAX - Free Report) was down 5.54% at $8.19. This change lagged the S&P 500's daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1%.

Heading into today, shares of the vaccine maker had gained 32.57% over the past month, outpacing the Medical sector's gain of 0.09% and the S&P 500's gain of 2.06%.

The upcoming earnings release of Novavax will be of great interest to investors. The company is expected to report EPS of -$0.66, down 29.41% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $78.41 million, indicating a 11.21% decrease compared to the same quarter of the previous year.

NVAX's full-year Zacks Consensus Estimates are calling for earnings of $1.94 per share and revenue of $1.05 billion. These results would represent year-over-year changes of +257.72% and 0%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novavax. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 36.15% higher. Novavax is currently a Zacks Rank #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% 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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