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Nvidia (NVDA) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Nvidia (NVDA - Free Report) closed at $152.06, marking a -0.87% move from the previous day. This change lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.45%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 7.14% over the past month, lagging the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.33% in that time.
Investors will be hoping for strength from Nvidia as it approaches its next earnings release. The company is expected to report EPS of $0.81, down 38.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.02 billion, down 21.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $26.94 billion. These totals would mark changes of -26.35% and +0.1%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions help to show the ever-changing nature of 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. 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 0.54% lower. Nvidia is currently a Zacks Rank #4 (Sell).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 46.98. This valuation marks a premium compared to its industry's average Forward P/E of 13.29.
Also, we should mention that NVDA has a PEG ratio of 3.9. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Nvidia (NVDA - Free Report) closed at $152.06, marking a -0.87% move from the previous day. This change lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.45%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 7.14% over the past month, lagging the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.33% in that time.
Investors will be hoping for strength from Nvidia as it approaches its next earnings release. The company is expected to report EPS of $0.81, down 38.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.02 billion, down 21.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $26.94 billion. These totals would mark changes of -26.35% and +0.1%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions help to show the ever-changing nature of 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. 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 0.54% lower. Nvidia is currently a Zacks Rank #4 (Sell).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 46.98. This valuation marks a premium compared to its industry's average Forward P/E of 13.29.
Also, we should mention that NVDA has a PEG ratio of 3.9. 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. The Semiconductor - General industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.