Novavax (NVAX) closed the most recent trading day at $8.45, moving +0.24% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.35%.

The vaccine maker's stock has dropped by 13.63% in the past month, falling short of the Medical sector's gain of 4.51% and the S&P 500's gain of 1.02%.

The investment community will be closely monitoring the performance of Novavax in its forthcoming earnings report. On that day, Novavax is projected to report earnings of -$0.67 per share, which would represent year-over-year growth of 53.47%. In the meantime, our current consensus estimate forecasts the revenue to be $90.72 million, indicating a 68.86% decline compared to the corresponding quarter of the prior year.

It is also important to note the recent changes to analyst estimates for Novavax. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 118.75% increase. Novavax currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Novavax is currently trading at a Forward P/E ratio of 1967.01. Its industry sports an average Forward P/E of 22.84, so one might conclude that Novavax is trading at a premium comparatively.

Investors should also note that NVAX has a PEG ratio of 64.28 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Biomedical and Genetics industry held an average PEG ratio of 1.46.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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