Nvidia (NVDA) Ascends While Market Falls: Some Facts to Note
In the latest trading session, Nvidia (NVDA) closed at $486.20, marking a +0.59% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.08%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.22%.
The maker of graphics chips for gaming and artificial intelligence's stock has climbed by 6.32% in the past month, exceeding the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is scheduled to release its earnings on November 21, 2023. The company is expected to report EPS of $3.34, up 475.86% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $16.12 billion, indicating a 171.72% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $10.74 per share and a revenue of $54.4 billion, demonstrating changes of +221.56% and +101.69%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Nvidia is at present trading with a Forward P/E ratio of 45. For comparison, its industry has an average Forward P/E of 18.36, which means Nvidia is trading at a premium to the group.
It is also worth noting that NVDA currently has a PEG ratio of 3.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 2.71.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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