Novavax (NVAX) is working to expand use of its Covid vaccine, but NVAX stock remains under pressure heading into the second quarter.
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In late March, Novavax asked the European Union to allow young people age 12-17 to receive its Covid shot. The biotech company also announced its vaccine would be tested in two booster studies in the U.S. and the United Arab Emirates. Further, Novavax said its shot is now available in Canada.
Doses are now shipping to a number of geographies, including Europe, Australia, Indonesia and South Korea. The company projects $4 billion to $5 billion in full-year revenue. Analysts expect Novavax to bring in almost $4.5 billion in 2022 sales with its vaccine accounting for $3.5 billion.
Meanwhile, the vaccine is under consideration in the U.S., where many people are holding out for an alternative to messenger RNA vaccines from Pfizer (PFE) and Moderna (MRNA). Johnson & Johnson (JNJ) also sells a single-shot vaccine that uses a different technology to prevent Covid.
Still, NVAX stock remains below its 50-day and 200-day lines, according to MarketSmith.com. Shares have been under pressure as Novavax builds its manufacturing capacity and works to demonstrate the shot’s purity to U.S. regulators.
So, is it time to buy or sell NVAX stock?
Fundamental Analysis Of NVAX Stock
Novavax isn’t measuring up to CAN SLIM guidelines for successfully trading growth stocks.
The company has reported years of annual losses, a trend that continued last year. In 2021, Novavax lost $23.44 per share, widening from a per-share loss of $7.27 in 2020. Analysts expected a loss of $13.70 per share in 2021. This year, analysts expect Novavax to become profitable with per-share earnings of $22.84.
It’s important to note, losses are common for newly commercial biotech companies — which are usually investing in research and development — but it’s not desirable from a CAN SLIM perspective.
Full-year revenue was nearly $1.15 billion, below expectations for $1.26 billion. But revenue surged 141%. This year, NVAX stock analysts project $4.49 billion in…
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