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Nvidia (NVDA) Stock Sinks As Market Gains: What You Should Know
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Nvidia (NVDA - Free Report) closed the most recent trading day at $409.09, moving -1.44% from the previous trading session. This change lagged the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 14.43% in the past month. In that same time, the Computer and Technology sector gained 8.52%, while the S&P 500 gained 5.26%.
NVDA will be looking to display strength as it nears its next earnings release. In that report, analysts expect NVDA to post earnings of $1.95 per share. This would mark year-over-year growth of 57.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.65 billion, up 41.71% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $7.90 per share and revenue of $14.47 billion. These results would represent year-over-year changes of +36.44% and +32.57%, respectively.
It is also important to note the recent changes to analyst estimates for NVDA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. NVDA is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, NVDA currently has a Forward P/E ratio of 52.56. For comparison, its industry has an average Forward P/E of 36.72, which means NVDA is trading at a premium to the group.
Meanwhile, NVDA's PEG ratio is currently 3.11. 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 3.32 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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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Nvidia (NVDA) Stock Sinks As Market Gains: What You Should Know
Nvidia (NVDA - Free Report) closed the most recent trading day at $409.09, moving -1.44% from the previous trading session. This change lagged the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 14.43% in the past month. In that same time, the Computer and Technology sector gained 8.52%, while the S&P 500 gained 5.26%.
NVDA will be looking to display strength as it nears its next earnings release. In that report, analysts expect NVDA to post earnings of $1.95 per share. This would mark year-over-year growth of 57.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.65 billion, up 41.71% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $7.90 per share and revenue of $14.47 billion. These results would represent year-over-year changes of +36.44% and +32.57%, respectively.
It is also important to note the recent changes to analyst estimates for NVDA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. NVDA is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, NVDA currently has a Forward P/E ratio of 52.56. For comparison, its industry has an average Forward P/E of 36.72, which means NVDA is trading at a premium to the group.
Meanwhile, NVDA's PEG ratio is currently 3.11. 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 3.32 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.