Trade-Ideas: Novavax (NVAX) Is Today's

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Novavax ( NVAX) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Novavax as such a stock due to the following factors:

  • NVAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.6 million.
  • NVAX has traded 89,765 shares today.
  • NVAX is up 4.8% today.
  • NVAX was down 9.5% yesterday.

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More details on NVAX:

Novavax, Inc., a clinical-stage biopharmaceutical company, focuses on developing recombinant protein nanoparticle vaccines to address a range of infectious diseases. Currently there are 4 analysts that rate Novavax a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Novavax has been 5.2 million shares per day over the past 30 days. Novavax has a market cap of $1.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.10 and a short float of 24.7% with 5.46 days to cover. Shares are up 11.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Novavax as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • NOVAVAX INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, NOVAVAX INC reported poor results of -$0.22 versus -$0.17 in the prior year. For the next year, the market is expecting a contraction of 45.5% in earnings (-$0.32 versus -$0.22).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 112.0% when compared to the same quarter one year ago, falling from -$7.22 million to -$15.30 million.
  • Net operating cash flow has significantly decreased to -$14.88 million or 292.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, NOVAVAX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • NVAX, with its decline in revenue, underperformed when compared the industry average of 11.1%. Since the same quarter one year prior, revenues fell by 16.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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