This Momentum Stock Is Up 1,633% Year-to-Date – Here’s Why It Could Run 5-10x Higher

The company has some very promising COVID-19 solutions in the pipeline that could help shares jump a 5-10x from current levels…

Yulia Kolosova / CC BY

Novavax Inc. (NASDAQ: NVAX) is a biotechnology company headquartered in Maryland that develops vaccines.

The company works in the clinical stage of development with a focus on delivering novel products that prevent a broad range of diseases.

Novavax works together with its wholly owned Swedish subsidiary to produce vaccine candidates to respond to both known and emerging disease threats.

The company develops product candidates geared toward all age demographics of the general population and believes its vaccine technology has the potential to be applied broadly to a wide variety of human infectious diseases.

Since the start of 2020, no stock has performed better than NVAX. It’s up an astounding 1,633% – from $4.50 on Jan. 2nd, to $78 today.

finviz dynamic chart for  NVAX

If you’re worried you missed the rally, don’t. NVAX stock is just heating up…

Novavax has some very promising COVID-19 solutions in the pipeline that could help shares jump an additional 5-10x from here.

While that might sound ambitious, keep in mind the total business is only worth $4.5 billion.

There’s certainly a lot of room to grow. And a $45 billion valuation isn’t outrageous if the company is able to develop a working coronavirus vaccine.

In early May, Novavax was awarded $388 million in funding from the Coalition for Epidemic Preparedness Innovations (CEPI) foundation.

And by the end of the month, the company initiated Phase 1/2 of its clinical COVID-19 vaccine trial.

Early results have been promising thus far – which is the main reason why the stock is up more than any other so far this year.

Scientists as Novavax identified its NVX-CoV2373 as its lead SARS-CoV-2 candidate following pre-clinical testing that demonstrated high immunogenicity and high levels of neutralizing antibodies.

These results provide strong evidence that the vaccine candidate will be highly immunogenic (able to produce an immune response) in humans, potentially leading to protection from COVID-19 and thus helping to control the spread of the disease.

The full results from Phase 1 are expected in July. When they come in, I’ll be sure to send you an update.

Then, we can focus our attention on Phase 2 and the potential returns that could bring to NVAX stock…

EDITOR'S NOTE: This is the 3rd issue of a 3-part series looking at small-cap stocks. In this edition, we looked at the best small-cap momentum stock. Click here for the best small-cap value stock (part 1), and click here for the best small-cap growth stock (part 2).