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Nvidia (NVDA) Gains But Lags Market: What You Should Know
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Nvidia (NVDA - Free Report) closed the most recent trading day at $148.90, moving +0.48% from the previous trading session. This change lagged the S&P 500's 0.54% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 25.65% over the past month. This has lagged the Computer and Technology sector's loss of 3.66% and the S&P 500's loss of 4.97% in that time.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be February 14, 2019. The company is expected to report EPS of $1.41, down 18.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.70 billion, down 7.18% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for NVDA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 9.79% lower. NVDA is currently a Zacks Rank #4 (Sell).
Looking at its valuation, NVDA is holding a Forward P/E ratio of 20.47. For comparison, its industry has an average Forward P/E of 12.26, which means NVDA is trading at a premium to the group.
Meanwhile, NVDA's PEG ratio is currently 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
Nvidia (NVDA - Free Report) closed the most recent trading day at $148.90, moving +0.48% from the previous trading session. This change lagged the S&P 500's 0.54% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 25.65% over the past month. This has lagged the Computer and Technology sector's loss of 3.66% and the S&P 500's loss of 4.97% in that time.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be February 14, 2019. The company is expected to report EPS of $1.41, down 18.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.70 billion, down 7.18% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for NVDA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 9.79% lower. NVDA is currently a Zacks Rank #4 (Sell).
Looking at its valuation, NVDA is holding a Forward P/E ratio of 20.47. For comparison, its industry has an average Forward P/E of 12.26, which means NVDA is trading at a premium to the group.
Meanwhile, NVDA's PEG ratio is currently 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.