Monday morning started with a bang for Novavax, a company specializing in developing and selling vaccines – as the name suggests. They’ve played a role in discovering and rolling out vaccines for the seasonal flu, COVID-19, Ebola, and many other illnesses.
And today, the company issued a statement announcing the appointment of John Jacobs as CEO. He will also serve as president and brings a wealth of experience after serving as CEO of Harmony Biosciences Holdings Inc. Jacobs is replacing Stanley Erck, who isn’t going anywhere – he’ll remain on the board through 2024 to continue advising the company through this transitionary period.
The company claims this move is simply the result of Erck wanting to retire after a long tenure with the company. Nevertheless, it’s hard to imagine the performance of Novavax over the past year or two didn’t play a role in this decision. The stock is down over 90% in the last year.
This could be the result of a down market as a whole – but it’s more likely that sales are suffering as the COVID-19 pandemic becomes a thing of the past. It certainly doesn’t help that distrust around vaccines is mounting as more and more news comes out about how COVID-19 vaccines were handled.
At any rate, this news has sent NVAX shares trading 15% higher Monday morning. This begs the question – is now a good time to buy? The stock hasn’t sat this low in over 2 years, and we’ve seen the heights it could reach of over $290 a share back in 2021.
Before you make any sort of move with NVAX, you’re going to want to see these three things we’ve uncovered through the VectorVest stock forecasting software.
NVAX Has Poor Safety With Very Poor Upside Potential & Timing
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Or, better yet, just follow the clear buy, sell, or hold recommendation VectorVest offers you based on these three ratings! It’s really that easy. Here’s the current situation for NVAX:
- Very Poor Upside Potential: the RV rating compares a stock’s long-term price appreciation potential (3 years out) to AAA corporate bond rates and risk. As for NVAX, the RV rating of 0.22 is very poor. Moreover, the stock is overvalued even at the low price point it currently sits at. The current value is just $1.52.
- Poor Safety: In terms of risk, NVAX isn’t safe by any means. The RS rating of 0.55 is poor. This is based on the company’s financial consistency and predictability, debt-to-equity ratio, and business longevity.
- Very Poor Timing: Finally, the timing is very poor for NVAX right now - and the RT rating of 0.35 reflects that. This rating is based on the direction, dynamics, and magnitude of a stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year to paint the full picture for you. With that said, it will be interesting to see if today’s quick pump manifests itself in a more meaningful trend in the coming days.
All things considered, the overall VST rating for NVAX is very poor at 0.40. So - what should your next move be? You’re going to want to see this - get a free stock analysis here to learn more.
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VectorVest advocates buying safe, undervalued stocks, rising in price. As for NVAX, it is overvalued with very poor upside potential, poor safety, and very poor timing right now - despite the 15% gain it’s enjoyed this morning.
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