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Nvidia (NVDA) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Nvidia (NVDA - Free Report) closed at $278.02, marking a -1.45% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 2.76% in the past month. In that same time, the Computer and Technology sector lost 1.16%, while the S&P 500 gained 0.39%.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be May 24, 2023. In that report, analysts expect Nvidia to post earnings of $0.92 per share. This would mark a year-over-year decline of 32.35%. Meanwhile, our latest consensus estimate is calling for revenue of $6.5 billion, down 21.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.50 per share and revenue of $29.68 billion. These totals would mark changes of +34.73% and +10.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.55% higher. Nvidia currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 62.65 right now. Its industry sports an average Forward P/E of 17.56, so we one might conclude that Nvidia is trading at a premium comparatively.
We can also see that NVDA currently has a PEG ratio of 3.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General was holding an average PEG ratio of 2.96 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 200, putting it in the bottom 21% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Nvidia (NVDA - Free Report) closed at $278.02, marking a -1.45% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 2.76% in the past month. In that same time, the Computer and Technology sector lost 1.16%, while the S&P 500 gained 0.39%.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be May 24, 2023. In that report, analysts expect Nvidia to post earnings of $0.92 per share. This would mark a year-over-year decline of 32.35%. Meanwhile, our latest consensus estimate is calling for revenue of $6.5 billion, down 21.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.50 per share and revenue of $29.68 billion. These totals would mark changes of +34.73% and +10.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.55% higher. Nvidia currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 62.65 right now. Its industry sports an average Forward P/E of 17.56, so we one might conclude that Nvidia is trading at a premium comparatively.
We can also see that NVDA currently has a PEG ratio of 3.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General was holding an average PEG ratio of 2.96 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 200, putting it in the bottom 21% 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.