Novavax Shares Surge Following FDA Request for Additional Vaccine Data
Novavax (NVAX) shares surged 19.5% during the most recent trading session, closing at $7.47. This increase followed a notable rise in trading volume, indicating higher investor interest compared to a typical session. In contrast, the stock had experienced a 17.3% decline over the previous four weeks.
Positive Investor Reaction to FDA News
The share price boost came after the vaccine producer announced that the FDA requested more data regarding its protein-based COVID-19 vaccine as part of a post-marketing commitment. While this request points to a delay in full approval, many investors interpreted it as a sign of progress in the regulatory process, suggesting that the vaccine remains on the path toward eventual approval.
Quarterly Earnings Projections
Analysts forecast that Novavax will report quarterly earnings of $0.19 per share, reflecting a significant year-over-year increase of 118.1%. However, revenues are expected to decline, projected at $71.84 million, which represents a 23.5% drop from the same quarter last year.
Trends in Earnings Estimates
Earnings expectations and revenue growth are critical factors when assessing a stock’s potential. Historical data reveals a strong link between earnings estimate revisions and short-term stock price fluctuations. For Novavax, the consensus EPS estimate for this quarter has remained stable over the past 30 days. It’s noteworthy that a stock’s price generally doesn’t sustain upward momentum without trends in earnings estimate revisions. Therefore, investors should monitor NVAX closely to determine whether this recent surge can translate into sustained strength in the future.
Current Market Position and Competitors
At present, Novavax holds a Zacks Rank of #3 (Hold). The company falls under the Zacks Medical – Biomedical and Genetics industry. Another competitor in this field, BioNTech SE Sponsored ADR (BNTX), ended the last trading session 9.7% higher at $114.83, with a 7.9% return over the past month.
For BioNTech, the consensus EPS estimate has risen by 8.5% over the last month to -$2.77, which represents a dramatic decline of 95.1% compared to the same period last year. BioNTech also carries a Zacks Rank of #3 (Hold).
