Novavax (NVAX) Beats Market Returns: Some Facts to Consider

Novavax (NVAX) ended the trading day at $12.06, up 1.34% from the previous day’s close. The stock outperformed the S&P 500, which posted a daily gain of 0.1%. Meanwhile, the Dow Jones Industrial Average lost 0.08% and the tech-heavy Nasdaq Index gained 0.28%.

Shares of the vaccine maker have lost 34.51% over the past month. Meanwhile, the Medical sector has lost 0.44%, while the S&P 500 has gained 4.08%.

Investors will be paying close attention to Novavax’s performance when it releases its upcoming earnings results. The company’s forward EPS is projected at $1.13, which will represent an increase of 94.83% from the same quarter last year. Meanwhile, our most recent consensus estimate is calling for revenue of $429.83 million, which will reflect an increase of 1.27% from the same quarter last year.

For the full-year period, the Zacks Consensus Estimates are projecting earnings of $0.49 per share and revenue of $999.14 million, which would represent changes of +109.06% and +1.57%, respectively, from the prior year.

Additionally, investors should keep an eye on recent analyst forecast revisions for Novavax. These latest adjustments often reflect changing dynamics in near-term business models. In this context, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.

Our research suggests that these estimate changes are directly correlated with future stock price movements. To take advantage of this, we have developed the Zacks Rank, a proprietary model that 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 a remarkable, third-party-audited track record of outperformance, with #1 rated stocks producing an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection has moved 33.46% higher. Currently, Novavax carries a Zacks Rank of #3 (Hold).

In terms of valuation, Novavax is currently trading at a forward P/E ratio of 24.43. This represents a premium to the industry average forward P/E ratio of 23.03.

The Medical – Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 84, which ranks it in the top 34% of all 250+ industries.

The Zacks Sector Rank is ranked from best to worst based on the average Zacks Rank of the individual companies in each of these sectors. 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 follow these and other stock-moving indicators in the coming trading sessions.

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