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Will NVIDIA Beat or Miss Q4 Earnings? ETFs to Watch
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Graphics chipmaker NVIDIA (NVDA - Free Report) is set to release fourth-quarter fiscal 2021 results on Feb 24, after market close. As it has been one of the hottest stocks in the semiconductor space, let’s take a look at its fundamentals ahead of the earnings release.
NVIDIA has been rallying over the past three months, reaping gains of 10.8% but underperforming the industry average of 22.4% by a wide margin. This uptrend is likely to continue given the optimism surrounding the company’s profitability though an earnings surprise is difficult to predict this time.
Earnings Whispers
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. NVIDIA currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This videogame-gear specialist saw no earnings estimate revision over the past 30 days for the fourth quarter of fiscal 2021. The company’s earnings surprise history is solid. It delivered an earnings surprise of 11.49%, on average, in the last four quarters. Additionally, it is expected to post substantial earnings and revenue growth of 48.1% and 55.4%, respectively, for the to-be-reported quarter.
NVIDIA Corporation Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for the average target price is $585.56 with nearly 81% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
What’s Hot?
NVIDIA is expected to benefit from stay-at-home trend, which continues to boost demand for cloud gaming chips. Additionally, the future of self-driving cars and a resurgence in crypto-mining led to increased demand for NVIDIA chips (read: ETFs to Ride the Bitcoin Rally on Rising Popularity).
ETFs in Focus
Ahead of the results, investors could focus on ETFs having the largest allocation to NVIDIA. Below are five ETFs with the highest allocation to NVIDIA that could make compelling plays ahead of its earnings report:
This ETF invests in the most inspiring, biblically aligned large companies in the United States. It follows the Inspire 100 Index and holds 101 stocks in its basket with NVIDIA taking the top position at 8.3% share. The fund has accumulated $174.2 million in its asset base and trades in average daily volume of 26,000 shares. It charges 35 bps in annual fees.
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
This fund follows the Indxx Global Robotics & Artificial Intelligence Thematic Index, which seeks investment in companies that stand to benefit from the increased adoption and utilization of robotics and AI including those involved with industrial robotics and automation, non-industrial robots and autonomous vehicles. It has 32 stocks in its basket with NVIDIA occupying the top spot with 8.3% share. The ETF has AUM of $2.7 billion and average daily volume of 938,000 shares. It charges 68 bps in annual fees.
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)
This fund offers exposure to global companies, involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. It holds 25 stocks with NVIDIA taking the second spot with 7.5% share. American firms account for one-third of the portfolio while China and Japan round off the next two with double-digit allocations each. The fund has gathered $945.4 million in its asset base while trading in average daily volume of 163,000 shares. It charges 55 bps in annual fees from investors (read: A Thorough Guide to Video Gaming ETFs).
This ETF offers exposure to 30 U.S. companies that design, manufacture and distribute semiconductors by tracking the PHLX SOX Semiconductor Sector Index. Of these, NVIDIA takes the third position with 7.4% share. The fund amassed $6 billion in its asset base and charges a fee of 46 bps a year. It trades in a solid volume of 626,000 shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 4 ETFs to Invest in Shining Semiconductor Stocks).
Direxion High Growth ETF
This fund offers exposure to US stocks that have exhibited strong historical growth rates, and are positioned to potentially do so in the future. It looks for consistent and sustainable growth by integrating historical sales growth with estimated earnings and cash flow growth. At the same time, the fund tilts toward companies with positive momentum and high-quality characteristics, and aims to neutralize exposure to those that may be overvalued and volatile. HIPR tracks the Russell 1000 Hyper Growth Index and holds 91 securities with NVIDIA taking the third spot at 6.2% allocation. It charges 40 bps in annual fees and has accumulated $9.3 million in its asset base. Volume is meager, exchanging 1,000 shares in hand.
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Will NVIDIA Beat or Miss Q4 Earnings? ETFs to Watch
Graphics chipmaker NVIDIA (NVDA - Free Report) is set to release fourth-quarter fiscal 2021 results on Feb 24, after market close. As it has been one of the hottest stocks in the semiconductor space, let’s take a look at its fundamentals ahead of the earnings release.
NVIDIA has been rallying over the past three months, reaping gains of 10.8% but underperforming the industry average of 22.4% by a wide margin. This uptrend is likely to continue given the optimism surrounding the company’s profitability though an earnings surprise is difficult to predict this time.
Earnings Whispers
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. NVIDIA currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This videogame-gear specialist saw no earnings estimate revision over the past 30 days for the fourth quarter of fiscal 2021. The company’s earnings surprise history is solid. It delivered an earnings surprise of 11.49%, on average, in the last four quarters. Additionally, it is expected to post substantial earnings and revenue growth of 48.1% and 55.4%, respectively, for the to-be-reported quarter.
NVIDIA Corporation Price, Consensus and EPS Surprise
NVIDIA Corporation price-consensus-eps-surprise-chart | NVIDIA Corporation Quote
The stock belongs to a top-ranked Zacks industry (placed at the top 28% of 250+ industries) (see: all the Technology ETFs here).
The Zacks Consensus Estimate for the average target price is $585.56 with nearly 81% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
What’s Hot?
NVIDIA is expected to benefit from stay-at-home trend, which continues to boost demand for cloud gaming chips. Additionally, the future of self-driving cars and a resurgence in crypto-mining led to increased demand for NVIDIA chips (read: ETFs to Ride the Bitcoin Rally on Rising Popularity).
ETFs in Focus
Ahead of the results, investors could focus on ETFs having the largest allocation to NVIDIA. Below are five ETFs with the highest allocation to NVIDIA that could make compelling plays ahead of its earnings report:
Inspire 100 ETF (BIBL - Free Report)
This ETF invests in the most inspiring, biblically aligned large companies in the United States. It follows the Inspire 100 Index and holds 101 stocks in its basket with NVIDIA taking the top position at 8.3% share. The fund has accumulated $174.2 million in its asset base and trades in average daily volume of 26,000 shares. It charges 35 bps in annual fees.
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
This fund follows the Indxx Global Robotics & Artificial Intelligence Thematic Index, which seeks investment in companies that stand to benefit from the increased adoption and utilization of robotics and AI including those involved with industrial robotics and automation, non-industrial robots and autonomous vehicles. It has 32 stocks in its basket with NVIDIA occupying the top spot with 8.3% share. The ETF has AUM of $2.7 billion and average daily volume of 938,000 shares. It charges 68 bps in annual fees.
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)
This fund offers exposure to global companies, involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. It holds 25 stocks with NVIDIA taking the second spot with 7.5% share. American firms account for one-third of the portfolio while China and Japan round off the next two with double-digit allocations each. The fund has gathered $945.4 million in its asset base while trading in average daily volume of 163,000 shares. It charges 55 bps in annual fees from investors (read: A Thorough Guide to Video Gaming ETFs).
iShares PHLX Semiconductor ETF (SOXX - Free Report)
This ETF offers exposure to 30 U.S. companies that design, manufacture and distribute semiconductors by tracking the PHLX SOX Semiconductor Sector Index. Of these, NVIDIA takes the third position with 7.4% share. The fund amassed $6 billion in its asset base and charges a fee of 46 bps a year. It trades in a solid volume of 626,000 shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 4 ETFs to Invest in Shining Semiconductor Stocks).
Direxion High Growth ETF
This fund offers exposure to US stocks that have exhibited strong historical growth rates, and are positioned to potentially do so in the future. It looks for consistent and sustainable growth by integrating historical sales growth with estimated earnings and cash flow growth. At the same time, the fund tilts toward companies with positive momentum and high-quality characteristics, and aims to neutralize exposure to those that may be overvalued and volatile. HIPR tracks the Russell 1000 Hyper Growth Index and holds 91 securities with NVIDIA taking the third spot at 6.2% allocation. It charges 40 bps in annual fees and has accumulated $9.3 million in its asset base. Volume is meager, exchanging 1,000 shares in hand.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>