Novavax (NVAX) ended the recent trading session at $6.85, demonstrating a -2.28% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the vaccine maker had gained 6.05% over the past month, outpacing the Medical sector's loss of 0.96% and the S&P 500's gain of 3.39%.
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 -$0.19, indicating a 119.19% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $118 million, down 71.6% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.48 per share and revenue of $1.05 billion, indicating changes of +301.63% and +53.6%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novavax. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 6.34% lower. As of now, Novavax holds a Zacks Rank of #3 (Hold).
Digging into valuation, Novavax currently has a Forward P/E ratio of 2.83. Its industry sports an average Forward P/E of 19.79, so one might conclude that Novavax is trading at a discount comparatively.
Investors should also note that NVAX has a PEG ratio of 0.09 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.75.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Novavax, Inc. (NVAX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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