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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
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Nvidia (NVDA - Free Report) closed at $188.93 in the latest trading session, marking a +1.98% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.56%. Meanwhile, the Dow gained 1.29%, and the Nasdaq, a tech-heavy index, added 0.01%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 23.8% over the past month, outpacing the Computer and Technology sector's gain of 9.38% and the S&P 500's gain of 7.11% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be August 24, 2022. In that report, analysts expect Nvidia to post earnings of $1.26 per share. This would mark year-over-year growth of 21.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.12 billion, up 24.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.39 per share and revenue of $33.68 billion. These totals would mark changes of +21.4% and +25.14%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. Nvidia currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 34.4. For comparison, its industry has an average Forward P/E of 11.03, which means Nvidia is trading at a premium to the group.
Investors should also note that NVDA has a PEG ratio of 2.37 right now. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.04 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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) Outpaces Stock Market Gains: What You Should Know
Nvidia (NVDA - Free Report) closed at $188.93 in the latest trading session, marking a +1.98% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.56%. Meanwhile, the Dow gained 1.29%, and the Nasdaq, a tech-heavy index, added 0.01%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 23.8% over the past month, outpacing the Computer and Technology sector's gain of 9.38% and the S&P 500's gain of 7.11% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be August 24, 2022. In that report, analysts expect Nvidia to post earnings of $1.26 per share. This would mark year-over-year growth of 21.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.12 billion, up 24.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.39 per share and revenue of $33.68 billion. These totals would mark changes of +21.4% and +25.14%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. Nvidia currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 34.4. For comparison, its industry has an average Forward P/E of 11.03, which means Nvidia is trading at a premium to the group.
Investors should also note that NVDA has a PEG ratio of 2.37 right now. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.04 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.