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Novavax (NVAX) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest market close, Novavax (NVAX - Free Report) reached $12.57, with a -1.87% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 1.37%. On the other hand, the Dow registered a loss of 1.21%, and the technology-centric Nasdaq decreased by 2.3%.

The vaccine maker's shares have seen an increase of 2.07% over the last month, surpassing the Medical sector's gain of 0.74% and the S&P 500's gain of 1.11%.

Investors will be eagerly watching for the performance of Novavax in its upcoming earnings disclosure. In that report, analysts expect Novavax to post earnings of $1.37 per share. This would mark year-over-year growth of 136.21%. Our most recent consensus estimate is calling for quarterly revenue of $383.86 million, down 9.56% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.46 per share and a revenue of $966.25 million, representing changes of +108.5% and -1.77%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Novavax. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 5.87% fall in the Zacks Consensus EPS estimate. At present, Novavax boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Novavax is presently trading at a Forward P/E ratio of 27.93. This expresses a premium compared to the average Forward P/E of 24.58 of its industry.

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 35% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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