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Why Nvidia (NVDA) Dipped More Than Broader Market Today
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Nvidia (NVDA - Free Report) closed at $122.45 in the latest trading session, marking a -0.89% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.06%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 4.6% over the past month. This has outpaced the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96% in that time.
Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. In that report, analysts expect Nvidia to post earnings of $0.63 per share. This would mark year-over-year growth of 133.33%. Simultaneously, our latest consensus estimate expects the revenue to be $28.24 billion, showing a 109.04% escalation compared to the year-ago quarter.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $117.75 billion. These results would represent year-over-year changes of +106.92% and +93.29%, respectively.
It's also important for investors to be aware of any recent modifications to 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate has moved 0.48% higher within the past month. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 45.95. This expresses a premium compared to the average Forward P/E of 32.31 of its industry.
It is also worth noting that NVDA currently has a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor - General industry stood at 2.65 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 216, finds itself in the bottom 15% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why Nvidia (NVDA) Dipped More Than Broader Market Today
Nvidia (NVDA - Free Report) closed at $122.45 in the latest trading session, marking a -0.89% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.06%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 4.6% over the past month. This has outpaced the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96% in that time.
Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. In that report, analysts expect Nvidia to post earnings of $0.63 per share. This would mark year-over-year growth of 133.33%. Simultaneously, our latest consensus estimate expects the revenue to be $28.24 billion, showing a 109.04% escalation compared to the year-ago quarter.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $117.75 billion. These results would represent year-over-year changes of +106.92% and +93.29%, respectively.
It's also important for investors to be aware of any recent modifications to 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate has moved 0.48% higher within the past month. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 45.95. This expresses a premium compared to the average Forward P/E of 32.31 of its industry.
It is also worth noting that NVDA currently has a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor - General industry stood at 2.65 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 216, finds itself in the bottom 15% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.