Novavax (NVAX) closed at $8.52 in the latest trading session, marking a -2.07% move from the prior day. This change lagged the S&P 500's 0.23% gain on the day. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 0.8%.
The vaccine maker's stock has climbed by 1.52% in the past month, falling short of the Medical sector's gain of 5.57% and the S&P 500's gain of 3.57%.
Analysts and investors alike will be keeping a close eye on the performance of Novavax in its upcoming earnings disclosure. In that report, analysts expect Novavax to post earnings of -$0.81 per share. This would mark a year-over-year decline of 6.58%. In the meantime, our current consensus estimate forecasts the revenue to be $40.94 million, indicating a 51.55% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.26 per share and revenue of $1.05 billion, which would represent changes of +283.74% and +54.5%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Novavax. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 15.67% decrease. As of now, Novavax holds a Zacks Rank of #3 (Hold).
With respect to valuation, Novavax is currently being traded at a Forward P/E ratio of 3.85. For comparison, its industry has an average Forward P/E of 19.33, which means Novavax is trading at a discount to the group.
We can also see that NVAX currently has a PEG ratio of 0.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 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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Novavax, Inc. (NVAX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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