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Nvidia (NVDA) Stock Sinks As Market Gains: What You Should Know

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Nvidia (NVDA - Free Report) closed at $133.50 in the latest trading session, marking a -0.11% move from the prior day. This move lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 1.15%, and the Nasdaq, a tech-heavy index, added 0.77%.

Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 15.07% over the past month, lagging the Computer and Technology sector's loss of 7.6% and the S&P 500's loss of 9.35% in that time.

Investors will be hoping for strength from NVDA as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect NVDA to post earnings of $1.41 per share. This would mark a year-over-year decline of 18.02%. Meanwhile, our latest consensus estimate is calling for revenue of $2.70 billion, down 7.18% from the prior-year quarter.

NVDA's full-year Zacks Consensus Estimates are calling for earnings of $7.24 per share and revenue of $12.21 billion. These results would represent year-over-year changes of +47.15% and +25.73%, respectively.

It is also important to note the recent changes to analyst estimates for NVDA. 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NVDA currently has a Zacks Rank of #4 (Sell).

Digging into valuation, NVDA currently has a Forward P/E ratio of 18.47. This valuation marks a premium compared to its industry's average Forward P/E of 12.19.

We can also see that NVDA currently has a PEG ratio of 1.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General industry currently had an average PEG ratio of 1.73 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 238, putting it in the bottom 7% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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