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) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
Nvidia (NVDA - Free Report) ended the recent trading session at $129.28, demonstrating a +1.47% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.63%.
The maker of graphics chips for gaming and artificial intelligence's stock has dropped by 1.71% in the past month, falling short of the Computer and Technology sector's gain of 5.73% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is predicted to post an EPS of $0.63, indicating a 133.33% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.24 billion, up 109.04% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.68 per share and a revenue of $117.55 billion, indicating changes of +106.15% and +92.95%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 47.52. This valuation marks a premium compared to its industry's average Forward P/E of 31.56.
We can also see that NVDA currently has a PEG ratio of 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.64.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nvidia (NVDA) Outperforms Broader Market: What You Need to Know
Nvidia (NVDA - Free Report) ended the recent trading session at $129.28, demonstrating a +1.47% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.63%.
The maker of graphics chips for gaming and artificial intelligence's stock has dropped by 1.71% in the past month, falling short of the Computer and Technology sector's gain of 5.73% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is predicted to post an EPS of $0.63, indicating a 133.33% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.24 billion, up 109.04% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.68 per share and a revenue of $117.55 billion, indicating changes of +106.15% and +92.95%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 47.52. This valuation marks a premium compared to its industry's average Forward P/E of 31.56.
We can also see that NVDA currently has a PEG ratio of 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.64.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.