Nvidia (NVDA) closed the most recent trading day at $158.29, moving +0.75% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.42%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 26.51% over the past month, lagging the Computer and Technology sector's loss of 1.79% and the S&P 500's loss of 1.1% in that time.
Investors will be hoping for strength from NVDA as it approaches its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $1.41, down 18.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.70 billion, down 7.18% from the prior-year quarter.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $7.24 per share and revenue of $12.21 billion. These results would represent year-over-year changes of +47.15% and +25.73%, respectively.
Investors should also note any recent changes to analyst estimates for NVDA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 9.79% lower within the past month. NVDA currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that NVDA has a Forward P/E ratio of 21.71 right now. Its industry sports an average Forward P/E of 12.33, so we one might conclude that NVDA is trading at a premium comparatively.
We can also see that NVDA currently has a PEG ratio of 2.03. 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. The Semiconductor - General was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.