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Nvidia (NVDA) Gains But Lags Market: What You Should Know
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Nvidia (NVDA - Free Report) closed the most recent trading day at $246.38, moving +0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.28%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 18.71% over the past month. This has lagged the Computer and Technology sector's loss of 8.19% and the S&P 500's loss of 5.29% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be February 16, 2022. In that report, analysts expect Nvidia to post earnings of $1.11 per share. This would mark year-over-year growth of 42.31%. Our most recent consensus estimate is calling for quarterly revenue of $7.43 billion, up 48.53% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. Nvidia is currently a Zacks Rank #2 (Buy).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 56.34. Its industry sports an average Forward P/E of 15.13, so we one might conclude that Nvidia is trading at a premium comparatively.
We can also see that NVDA currently has a PEG ratio of 2.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.53 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 21, which puts it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nvidia (NVDA) Gains But Lags Market: What You Should Know
Nvidia (NVDA - Free Report) closed the most recent trading day at $246.38, moving +0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.28%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 18.71% over the past month. This has lagged the Computer and Technology sector's loss of 8.19% and the S&P 500's loss of 5.29% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be February 16, 2022. In that report, analysts expect Nvidia to post earnings of $1.11 per share. This would mark year-over-year growth of 42.31%. Our most recent consensus estimate is calling for quarterly revenue of $7.43 billion, up 48.53% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. Nvidia is currently a Zacks Rank #2 (Buy).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 56.34. Its industry sports an average Forward P/E of 15.13, so we one might conclude that Nvidia is trading at a premium comparatively.
We can also see that NVDA currently has a PEG ratio of 2.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.53 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 21, which puts it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.