Nvidia (NVDA) closed at $535.87 in the latest trading session, marking a +1.94% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.64%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 0.82% over the past month, lagging the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 3.25% in that time.
NVDA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.57, up 44.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.42 billion, up 46.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.13 per share and revenue of $15.83 billion. These totals would mark changes of +57.69% and +45.02%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NVDA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. NVDA is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, NVDA is holding a Forward P/E ratio of 57.6. This represents a premium compared to its industry's average Forward P/E of 26.71.
We can also see that NVDA currently has a PEG ratio of 2.87. 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 2.87 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 206, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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