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Nvidia (NVDA) Stock Falls Amid Market Uptick: What Investors Need to Know

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Nvidia (NVDA - Free Report) closed the latest trading day at $111.59, indicating a -1.3% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.

Shares of the maker of graphics chips for gaming and artificial intelligence have depreciated by 8.48% over the course of the past month, underperforming the Computer and Technology sector's loss of 4.62% and the S&P 500's loss of 0.21%.

The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company is slated to reveal its earnings on August 28, 2024. It is anticipated that the company will report an EPS of $0.64, marking a 137.04% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $28.24 billion, indicating a 109.04% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.69 per share and a revenue of $117.82 billion, representing changes of +106.92% and +93.39%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. Nvidia presently features a Zacks Rank of #2 (Buy).

Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 42.05. This expresses a premium compared to the average Forward P/E of 30.36 of its industry.

Also, we should mention that NVDA has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 2.33.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 219, placing it within the bottom 14% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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