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

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Novavax (NVAX) closed at $56.41 in the latest trading session, marking a -0.25% move from the prior day. This move lagged the S&P 500's daily gain of 2.62%. Elsewhere, the Dow gained 1.37%, while the tech-heavy Nasdaq added 0.05%.

Prior to today's trading, shares of the vaccine maker had gained 10.75% over the past month. This has outpaced the Medical sector's loss of 0.12% and the S&P 500's gain of 0.24% in that time.

Wall Street will be looking for positivity from Novavax as it approaches its next earnings report date. On that day, Novavax is projected to report earnings of $5.51 per share, which would represent year-over-year growth of 216%. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 249.64% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $27.23 per share and revenue of $4.25 billion, which would represent changes of +216.17% and +270.35%, respectively, from the prior year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 10.32% higher within the past month. Novavax is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Novavax has a Forward P/E ratio of 2.08 right now. For comparison, its industry has an average Forward P/E of 24.12, which means Novavax is trading at a discount to the group.

Also, we should mention that NVAX has a PEG ratio of 0.06. 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 1.53 based on yesterday's closing prices.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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