Nvidia (NVDA) Outperforms Broader Market: What You Need to Know
Nvidia (NVDA) closed the most recent trading day at $440.41, moving +1.2% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
Shares of the maker of graphics chips for gaming and artificial intelligence have depreciated by 10.36% over the course of the past month, underperforming the Computer and Technology sector's loss of 6.4% and the S&P 500's loss of 6.19%.
Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. In that report, analysts expect Nvidia to post earnings of $3.32 per share. This would mark year-over-year growth of 472.41%. Meanwhile, our latest consensus estimate is calling for revenue of $16.04 billion, up 170.46% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.67 per share and revenue of $54.07 billion. These totals would mark changes of +219.46% and +100.44%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 2.38% higher within the past month. Nvidia is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 40.78 right now. This expresses a premium compared to the average Forward P/E of 18.27 of its industry.
Meanwhile, NVDA's PEG ratio is currently 3.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor - General industry stood at 2.66 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.
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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