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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
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Nvidia (NVDA - Free Report) closed the most recent trading day at $430.89, moving +1.46% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 13.8% in the past month. In that same time, the Computer and Technology sector lost 2.71%, while the S&P 500 lost 2.84%.
Nvidia will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nvidia to post earnings of $3.32 per share. This would mark year-over-year growth of 472.41%. Our most recent consensus estimate is calling for quarterly revenue of $16.04 billion, up 170.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.67 per share and revenue of $54.07 billion, which would represent changes of +219.46% and +81.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.38% higher. Nvidia is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Nvidia currently has a Forward P/E ratio of 39.8. Its industry sports an average Forward P/E of 21.26, so we one might conclude that Nvidia is trading at a premium comparatively.
Investors should also note that NVDA has a PEG ratio of 2.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.
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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
Nvidia (NVDA - Free Report) closed the most recent trading day at $430.89, moving +1.46% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 13.8% in the past month. In that same time, the Computer and Technology sector lost 2.71%, while the S&P 500 lost 2.84%.
Nvidia will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nvidia to post earnings of $3.32 per share. This would mark year-over-year growth of 472.41%. Our most recent consensus estimate is calling for quarterly revenue of $16.04 billion, up 170.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.67 per share and revenue of $54.07 billion, which would represent changes of +219.46% and +81.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.38% higher. Nvidia is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Nvidia currently has a Forward P/E ratio of 39.8. Its industry sports an average Forward P/E of 21.26, so we one might conclude that Nvidia is trading at a premium comparatively.
Investors should also note that NVDA has a PEG ratio of 2.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.