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

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The most recent trading session ended with Nvidia (NVDA - Free Report) standing at $132.80, reflecting a -0.58% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.36%.

Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 0.26% over the past month. This has lagged the Computer and Technology sector's gain of 2.31% and the S&P 500's gain of 4.19% in that time.

The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2025. The company is forecasted to report an EPS of $0.84, showcasing a 61.54% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $37.72 billion, showing a 70.68% escalation compared to the year-ago quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Nvidia boasts a Zacks Rank of #2 (Buy).

Digging into valuation, Nvidia currently has a Forward P/E ratio of 31.75. This valuation marks a discount compared to its industry's average Forward P/E of 32.68.

It's also important to note that NVDA currently trades at a PEG ratio of 1.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry currently had an average PEG ratio of 1.94 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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