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Nvidia (NVDA) Gains But Lags Market: What You Should Know
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Nvidia (NVDA - Free Report) closed at $198.15 in the latest trading session, marking a +0.33% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 3.6% in the past month. In that same time, the Computer and Technology sector gained 1.98%, while the S&P 500 gained 0.89%.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be August 18, 2021. In that report, analysts expect NVDA to post earnings of $1.02 per share. This would mark year-over-year growth of 85.45%. Meanwhile, our latest consensus estimate is calling for revenue of $6.34 billion, up 64.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.97 per share and revenue of $24.93 billion, which would represent changes of +58.8% and +49.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NVDA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.27% higher. NVDA is currently a Zacks Rank #3 (Hold).
In terms of valuation, NVDA is currently trading at a Forward P/E ratio of 49.71. For comparison, its industry has an average Forward P/E of 22.92, which means NVDA is trading at a premium to the group.
Also, we should mention that NVDA has a PEG ratio of 2.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 2.6 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
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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Nvidia (NVDA) Gains But Lags Market: What You Should Know
Nvidia (NVDA - Free Report) closed at $198.15 in the latest trading session, marking a +0.33% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 3.6% in the past month. In that same time, the Computer and Technology sector gained 1.98%, while the S&P 500 gained 0.89%.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be August 18, 2021. In that report, analysts expect NVDA to post earnings of $1.02 per share. This would mark year-over-year growth of 85.45%. Meanwhile, our latest consensus estimate is calling for revenue of $6.34 billion, up 64.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.97 per share and revenue of $24.93 billion, which would represent changes of +58.8% and +49.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NVDA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.27% higher. NVDA is currently a Zacks Rank #3 (Hold).
In terms of valuation, NVDA is currently trading at a Forward P/E ratio of 49.71. For comparison, its industry has an average Forward P/E of 22.92, which means NVDA is trading at a premium to the group.
Also, we should mention that NVDA has a PEG ratio of 2.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 2.6 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.