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Why the Market Dipped But Nvidia (NVDA) Gained Today
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Nvidia (NVDA - Free Report) closed the latest trading day at $722.48, indicating a +0.16% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Shares of the maker of graphics chips for gaming and artificial intelligence have appreciated by 31.85% over the course of the past month, outperforming the Computer and Technology sector's gain of 11.35% and the S&P 500's gain of 5.78%.
Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 21, 2024. The company's upcoming EPS is projected at $4.51, signifying a 412.5% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.18 billion, reflecting a 233.52% rise from the equivalent quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.04% increase. At present, Nvidia boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 35.62. Its industry sports an average Forward P/E of 26.52, so one might conclude that Nvidia is trading at a premium comparatively.
One should further note that NVDA currently holds a PEG ratio of 2.64. 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 2.72 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 22% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why the Market Dipped But Nvidia (NVDA) Gained Today
Nvidia (NVDA - Free Report) closed the latest trading day at $722.48, indicating a +0.16% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Shares of the maker of graphics chips for gaming and artificial intelligence have appreciated by 31.85% over the course of the past month, outperforming the Computer and Technology sector's gain of 11.35% and the S&P 500's gain of 5.78%.
Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 21, 2024. The company's upcoming EPS is projected at $4.51, signifying a 412.5% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.18 billion, reflecting a 233.52% rise from the equivalent quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.04% increase. At present, Nvidia boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 35.62. Its industry sports an average Forward P/E of 26.52, so one might conclude that Nvidia is trading at a premium comparatively.
One should further note that NVDA currently holds a PEG ratio of 2.64. 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 2.72 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 22% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.