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Novavax (NVAX) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Novavax (NVAX - Free Report) closed at $6.85, marking a -2.28% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq increased by 0.15%.

Shares of the vaccine maker have appreciated by 6.05% over the course of the past month, outperforming the Medical sector's loss of 0.96%, and the S&P 500's gain of 3.39%.

The upcoming earnings release of Novavax will be of great interest to investors. The company is expected to report EPS of -$0.19, down 119.19% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $118 million, indicating a 71.6% downward movement from the same quarter last year.

NVAX's full-year Zacks Consensus Estimates are calling for earnings of $2.48 per share and revenue of $1.05 billion. These results would represent year-over-year changes of +301.63% and +53.6%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Novavax. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.34% downward. Novavax is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Novavax is currently exchanging hands at a Forward P/E ratio of 2.83. This denotes a discount relative to the industry average Forward P/E of 19.79.

Meanwhile, NVAX's PEG ratio is currently 0.09. 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. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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