Novavax (NVAX) closed at $6.41 in the latest trading session, marking a +1.75% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.
Prior to today's trading, shares of the vaccine maker had lost 13.58% lagged the Medical sector's loss of 0% and the S&P 500's gain of 0.45%.
The upcoming earnings release of Novavax will be of great interest to investors. The company is predicted to post an EPS of -$0.12, indicating a 112.12% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $130.5 million, down 68.59% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.03 per share and revenue of $942.33 million, which would represent changes of +265.04% and +38.14%, respectively, from the prior year.
Any recent changes to analyst estimates for Novavax should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 38.61% rise in the Zacks Consensus EPS estimate. Currently, Novavax is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Novavax is presently trading at a Forward P/E ratio of 3.11. For comparison, its industry has an average Forward P/E of 19.86, which means Novavax is trading at a discount to the group.
We can also see that NVAX currently has a PEG ratio of 0.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.37.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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