We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nvidia (NVDA) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
Nvidia (NVDA - Free Report) closed the most recent trading day at $124.04, moving +0.43% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.6%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 1.67% over the past month, lagging the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71% in that time.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company's earnings per share (EPS) are projected to be $0.74, reflecting an 85% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $32.59 billion, reflecting a 79.88% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $124.17 billion. These totals would mark changes of +116.15% and +103.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.59% higher within the past month. Currently, Nvidia is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 43.88. For comparison, its industry has an average Forward P/E of 20.65, which means Nvidia is trading at a premium to the group.
Meanwhile, NVDA's PEG ratio is currently 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 3.92.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nvidia (NVDA) Outperforms Broader Market: What You Need to Know
Nvidia (NVDA - Free Report) closed the most recent trading day at $124.04, moving +0.43% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.6%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 1.67% over the past month, lagging the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71% in that time.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company's earnings per share (EPS) are projected to be $0.74, reflecting an 85% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $32.59 billion, reflecting a 79.88% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $124.17 billion. These totals would mark changes of +116.15% and +103.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.59% higher within the past month. Currently, Nvidia is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 43.88. For comparison, its industry has an average Forward P/E of 20.65, which means Nvidia is trading at a premium to the group.
Meanwhile, NVDA's PEG ratio is currently 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 3.92.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.