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) Suffers a Larger Drop Than the General Market: Key Insights
Read MoreHide Full Article
Nvidia (NVDA - Free Report) closed the latest trading day at $560.53, indicating a -0.58% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Shares of the maker of graphics chips for gaming and artificial intelligence witnessed a gain of 13.66% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.27% and the S&P 500's gain of 1.2%.
Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. The company is expected to report EPS of $4.49, up 410.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.1 billion, up 232.16% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.31 per share and a revenue of $58.92 billion, signifying shifts of +268.56% and +118.42%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. At present, Nvidia boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 45.82 right now. This expresses a premium compared to the average Forward P/E of 22.78 of its industry.
Investors should also note that NVDA has a PEG ratio of 3.39 right now. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 3.09.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Suffers a Larger Drop Than the General Market: Key Insights
Nvidia (NVDA - Free Report) closed the latest trading day at $560.53, indicating a -0.58% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Shares of the maker of graphics chips for gaming and artificial intelligence witnessed a gain of 13.66% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.27% and the S&P 500's gain of 1.2%.
Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. The company is expected to report EPS of $4.49, up 410.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.1 billion, up 232.16% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.31 per share and a revenue of $58.92 billion, signifying shifts of +268.56% and +118.42%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. At present, Nvidia boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 45.82 right now. This expresses a premium compared to the average Forward P/E of 22.78 of its industry.
Investors should also note that NVDA has a PEG ratio of 3.39 right now. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 3.09.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.