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Nvidia (NVDA) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Nvidia (NVDA - Free Report) closed at $151.76, marking a -1.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.24%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 4.6% in the past month. In that same time, the Computer and Technology sector gained 3.92%, while the S&P 500 gained 4.13%.
NVDA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.14, down 41.24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.55 billion, down 18.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.28 per share and revenue of $10.90 billion. These totals would mark changes of -20.48% and -6.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NVDA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% lower. NVDA is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NVDA is currently trading at a Forward P/E ratio of 29.2. This represents a premium compared to its industry's average Forward P/E of 16.
Investors should also note that NVDA has a PEG ratio of 3.11 right now. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.82 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 76, which puts it in the top 30% 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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Nvidia (NVDA) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Nvidia (NVDA - Free Report) closed at $151.76, marking a -1.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.24%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 4.6% in the past month. In that same time, the Computer and Technology sector gained 3.92%, while the S&P 500 gained 4.13%.
NVDA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.14, down 41.24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.55 billion, down 18.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.28 per share and revenue of $10.90 billion. These totals would mark changes of -20.48% and -6.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NVDA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% lower. NVDA is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NVDA is currently trading at a Forward P/E ratio of 29.2. This represents a premium compared to its industry's average Forward P/E of 16.
Investors should also note that NVDA has a PEG ratio of 3.11 right now. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.82 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 76, which puts it in the top 30% 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.