Nvidia (NVDA - Free Report) closed the most recent trading day at $569.93, moving +0.16% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 10.52% in the past month. In that same time, the Computer and Technology sector gained 8.45%, while the S&P 500 gained 5.91%.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. In that report, analysts expect NVDA to post earnings of $2.57 per share. This would mark year-over-year growth of 44.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.42 billion, up 46.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.11 per share and revenue of $15.83 billion, which would represent changes of +57.34% and +45.02%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.1% higher within the past month. NVDA currently has a Zacks Rank of #4 (Sell).
In terms of valuation, NVDA is currently trading at a Forward P/E ratio of 62.45. This valuation marks a premium compared to its industry's average Forward P/E of 30.66.
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 was holding an average PEG ratio of 3.2 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.