1-Star Stocks Poised to Plunge: Novavax?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, clinical-stage biopharmaceutical company Novavax (NAS: NVAX) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Novavax's business and see what CAPS investors are saying about the stock right now.

Novavaxfacts

Headquarters (founded)Rockville, Md. (1987)
Market Cap$244.1 million
IndustryBiotechnology
Trailing-12-Month Revenue$18.5 million
ManagementCEO Stanley Erck (since 2011)
CFO Frederick Driscoll (since 2009)
Return on Equity (average, past 3 years)(58.6%)
Cash/Debt$20.7 million / $407.0 thousand
CompetitorsAstraZeneca
Merck
Novartis

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 44% of the 81 All-Star members who have rated Novavax believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, biotech expert zzlangerhans, touched on Novavax's seemingly unsustainable price run:

Yet another on the long list of biopharmas enjoying an unjustified summer breakout. Trying to follow Novavax's vaccine pipeline gives me motion sickness. For five years I've tried to keep track of neverending phase I and I/II trials that seem to trail off into oblivion and then regenerate themselves months or years later. Nothing much is new of late except a [$12M] dilutive [equity financing] in May, but the stock is nevertheless up 50% from steady state since the beginning of June. Who gave the green light for all these stocks to go up without any rationale, and why wasn't I informed?

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 1-Star Stocks Poised to Plunge: Novavax? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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