Computing and artificial intelligence leader NVIDIA (NVDA - Free Report) reported Q2 results Wednesday after the closing bell that missed estimates. It marked the first earnings miss for NVIDIA, a Zacks Rank #5 (Strong Sell), in nearly four years. With the stock holding up fairly well after the announcement, is the poor outlook already priced in?
Shares of NVDA have fallen about 40% since the beginning of the year. The company posted quarterly EPS of $0.51/share, a -8.93% negative earnings surprise versus the $0.56/share consensus estimate. The figure marked NVDA’s first miss since Q4 2018.
NVDA is part of the Zacks Semiconductor – General industry, which ranks in the bottom 40% out of approximately 250 industry groups. Earnings estimates have also been revised downward for future quarters, with analysts cutting Q3 projections by 31.8% in the past 60 days.
Shares have shown resilience following the recent announcement despite today’s decline. Still, the stock is overvalued relative to its industry group, so investors will have to pay up for future growth.
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Computing and artificial intelligence leader NVIDIA (NVDA - Free Report) reported Q2 results Wednesday after the closing bell that missed estimates. It marked the first earnings miss for NVIDIA, a Zacks Rank #5 (Strong Sell), in nearly four years. With the stock holding up fairly well after the announcement, is the poor outlook already priced in?
Shares of NVDA have fallen about 40% since the beginning of the year. The company posted quarterly EPS of $0.51/share, a -8.93% negative earnings surprise versus the $0.56/share consensus estimate. The figure marked NVDA’s first miss since Q4 2018.
NVDA is part of the Zacks Semiconductor – General industry, which ranks in the bottom 40% out of approximately 250 industry groups. Earnings estimates have also been revised downward for future quarters, with analysts cutting Q3 projections by 31.8% in the past 60 days.
Shares have shown resilience following the recent announcement despite today’s decline. Still, the stock is overvalued relative to its industry group, so investors will have to pay up for future growth.
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Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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