Nvidia (NVDA – Free Report) closed the latest trading day at $139.93, indicating a -0.21% change from the previous session’s end. This change lagged the S&P 500’s daily loss of 0.04%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.
The maker of graphics chips for gaming and artificial intelligence’s stock has climbed by 3.61% in the past month, falling short of the Computer and Technology sector’s gain of 5.93% and outpacing the S&P 500’s gain of 1.05%.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. In that report, analysts expect Nvidia to post earnings of $0.84 per share. This would mark year-over-year growth of 61.54%. In the meantime, our current consensus estimate forecasts the revenue to be $37.72 billion, indicating a 70.68% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.94 per share and revenue of $129.02 billion, indicating changes of +126.15% and +111.78%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% higher within the past month. Nvidia presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Nvidia is holding a Forward P/E ratio of 47.7. Its industry sports an average Forward P/E of 31.19, so one might conclude that Nvidia is trading at a premium comparatively.
One should further note that NVDA currently holds a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Semiconductor – General stocks are, on average, holding a PEG ratio of 3.12 based on yesterday’s closing prices.
The Semiconductor – General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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