We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nvidia (NVDA) Exceeds Market Returns: Some Facts to Consider
Read MoreHide Full Article
In the latest market close, Nvidia (NVDA - Free Report) reached $460.95, with a +1.39% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 1.2%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 3.56% over the past month. This has outpaced the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3% in that time.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is forecasted to report an EPS of $3.34, showcasing a 475.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.12 billion, up 171.72% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.74 per share and a revenue of $54.4 billion, signifying shifts of +221.56% and +101.69%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.82% higher. Currently, Nvidia is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 42.34. This denotes a premium relative to the industry's average Forward P/E of 18.86.
Also, we should mention that NVDA has a PEG ratio of 3.14. 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. The Semiconductor - General was holding an average PEG ratio of 2.69 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nvidia (NVDA) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Nvidia (NVDA - Free Report) reached $460.95, with a +1.39% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 1.2%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 3.56% over the past month. This has outpaced the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3% in that time.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is forecasted to report an EPS of $3.34, showcasing a 475.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.12 billion, up 171.72% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.74 per share and a revenue of $54.4 billion, signifying shifts of +221.56% and +101.69%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.82% higher. Currently, Nvidia is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 42.34. This denotes a premium relative to the industry's average Forward P/E of 18.86.
Also, we should mention that NVDA has a PEG ratio of 3.14. 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. The Semiconductor - General was holding an average PEG ratio of 2.69 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.