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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
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Nvidia (NVDA - Free Report) closed at $221.98 in the latest trading session, marking a +1.91% move from the prior day. This move outpaced the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 18.52% over the past month. This has lagged the Computer and Technology sector's loss of 6.03% and the S&P 500's loss of 1.42% in that time.
Investors will be hoping for strength from Nvidia as it approaches its next earnings release. On that day, Nvidia is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 40.22%. Our most recent consensus estimate is calling for quarterly revenue of $8.11 billion, up 43.29% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $34.56 billion. These results would represent year-over-year changes of +24.77% and +28.42%, respectively.
Any recent changes to analyst estimates for Nvidia should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.31% lower. Nvidia currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 39.31. This represents a premium compared to its industry's average Forward P/E of 12.49.
We can also see that NVDA currently has a PEG ratio of 2.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
Nvidia (NVDA - Free Report) closed at $221.98 in the latest trading session, marking a +1.91% move from the prior day. This move outpaced the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 18.52% over the past month. This has lagged the Computer and Technology sector's loss of 6.03% and the S&P 500's loss of 1.42% in that time.
Investors will be hoping for strength from Nvidia as it approaches its next earnings release. On that day, Nvidia is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 40.22%. Our most recent consensus estimate is calling for quarterly revenue of $8.11 billion, up 43.29% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $34.56 billion. These results would represent year-over-year changes of +24.77% and +28.42%, respectively.
Any recent changes to analyst estimates for Nvidia should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.31% lower. Nvidia currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 39.31. This represents a premium compared to its industry's average Forward P/E of 12.49.
We can also see that NVDA currently has a PEG ratio of 2.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.