Earlier this week Vaxcyte (PCVX) shared an update on its VAX-31 trial results, which are quite promising. The stock popped nearly 50% on the news, sending shares to an all-time high of $115/share.
VAX-31 is the company’s pneumococcal conjugate vaccine. This disease can contribute to more serious illnesses such as pneumonia, meningitis, and various ear and sinus infections.
The recent trial featured more than 1,000 healthy adults and discovered that the treatment was well tolerated across the board for all tested doses.
The findings suggest that VAX-31 could rival Pfizer’s Prevnar 20. Not only did Vaxcyte’s treatment match the efficacy of Prevnar 20 in protecting against pneumococcal strains, but actually outperformed it in some scenarios.
The next step will be proceeding to a Phase 3 trial, which will assess its broad-spectrum efficacy and safety. This trial is currently scheduled to begin early next year with the goal of submitting a Biologics License Application before the end of 2026.
Given that the pneumococcal vaccine market is forecasted to be in excess of $10 billion by 2030, this is exciting news for Vaxcyte and its investors.
In fact, most experts on the Street have the stock rated as a buy right now – even after CEO Grant Pickering sold more than $1.18 million worth of shares.
The company also recently delivered lackluster quarterly earnings results, in which its net loss widened from $68.3 million in 2023 to $128.7 million for the current year. Still, the company had more cash on hand in Q2 2024 than it did the previous year with $1.85 billion in reserves.
So, where does that leave you – is now a good time to buy PCVX? We’ve taken a closer look at this stock through the VectorVest stock analysis software and found 3 things you need to see before making your next move.
PCVX Has Very Poor Upside Potential Despite Fair Safety and Excellent Timing
VectorVest saves you time and stress by delivering clear, actionable insights in just 3 simple ratings to help you win more trades with less work. These are relative value (RV), relative safety (RS), and relative timing (RT).
Each sits on a scale of 0.00-2.00 with 1.00 being the average, making interpretation quick and easy. Better yet, you’re offered a buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. Here’s what you need to see for PCVX:
- Very Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This makes it a far superior indicator to the typical comparison of price to value alone. PCVX has a very poor RV rating of 0.13.
- Fair Safety: The RS rating is a risk indicator. It’s computed from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating of 0.86 is a ways below the average for PCVX but deemed fair nonetheless.
- Excellent Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. The RT rating of 1.78 is excellent for PCVX and reflects the stock’s recent rally.
The overall VST rating of 1.21 is good, but not enough to earn the stock a BUY recommendation in the VectorVest system at this time. PCVX is currently rated a HOLD.
But, if you’re interested in learning more about this opportunity so you can capitalize when the time comes, take a moment to review this free stock analysis and transform your trading strategy for the better!
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VectorVest advocates buying safe, undervalued stocks, rising in price. PCVX popped nearly 50% this week after releasing its promising VAX-31 trial results, suggesting it could outperform a similar solution from Pfizer. The stock itself has very poor upside potential, fair safety, and excellent timing.
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