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Novavax (NVAX) Outpaces Stock Market Gains: What You Should Know

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Novavax (NVAX - Free Report) closed the most recent trading day at $81.45, moving +1.58% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 0.32%.

Prior to today's trading, shares of the vaccine maker had gained 9.1% over the past month. This has outpaced the Medical sector's gain of 5.94% and the S&P 500's gain of 5.65% in that time.

Novavax will be looking to display strength as it nears its next earnings release. In that report, analysts expect Novavax to post earnings of $3.30 per share. This would mark year-over-year growth of 208.2%. Our most recent consensus estimate is calling for quarterly revenue of $888.11 million, up 98.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.84 per share and revenue of $4.57 billion, which would represent changes of +197.44% and +298.65%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Novavax. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.04% lower. Novavax is currently a Zacks Rank #3 (Hold).

In terms of valuation, Novavax is currently trading at a Forward P/E ratio of 3.51. For comparison, its industry has an average Forward P/E of 22.45, which means Novavax is trading at a discount to the group.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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