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Novavax (NVAX) Stock Declines While Market Improves: Some Information for Investors

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Novavax (NVAX - Free Report) closed at $7.64 in the latest trading session, marking a -2.55% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.07%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Shares of the vaccine maker have appreciated by 20.99% over the course of the past month, outperforming the Medical sector's gain of 2.39%, and the S&P 500's gain of 5.71%.

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. Meanwhile, our latest consensus estimate is calling for revenue of $118 million, down 71.6% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.48 per share and a revenue of $1.05 billion, indicating changes of +301.63% and +53.6%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novavax. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 6.34% lower. Novavax presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Novavax is holding a Forward P/E ratio of 3.16. Its industry sports an average Forward P/E of 19.48, so one might conclude that Novavax is trading at a discount comparatively.

Meanwhile, NVAX's PEG ratio is currently 0.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Medical - Biomedical and Genetics industry had an average PEG ratio of 1.62.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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