Nvidia (NVDA) closed the latest trading day at $479.98, indicating a +0.9% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.34%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 4.54% in the past month. In that same time, the Computer and Technology sector gained 1.27%, while the S&P 500 gained 2.56%.
Market participants will be closely following the financial results of Nvidia in its upcoming release. The company is expected to report EPS of $4.48, up 409.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.1 billion, up 232.16% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.29 per share and a revenue of $58.92 billion, indicating changes of +267.96% and +118.42%, respectively, from the former year.
Investors might also notice recent changes 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.16% higher. Nvidia is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 38.69. This denotes a premium relative to the industry's average Forward P/E of 23.18.
Investors should also note that NVDA has a PEG ratio of 2.87 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General industry had an average PEG ratio of 2.85 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>NVIDIA Corporation (NVDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
