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Nvidia (NVDA) Gains As Market Dips: What You Should Know
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Nvidia (NVDA - Free Report) closed at $416.10 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 13.03% over the past month. This has lagged the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. In that report, analysts expect Nvidia to post earnings of $3.32 per share. This would mark year-over-year growth of 472.41%. Meanwhile, our latest consensus estimate is calling for revenue of $16.04 billion, up 170.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.67 per share and revenue of $54.07 billion. These totals would mark changes of +219.46% and +81.81%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 38.17% higher. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Nvidia is holding a Forward P/E ratio of 38.44. For comparison, its industry has an average Forward P/E of 18.35, which means Nvidia is trading at a premium to the group.
We can also see that NVDA currently has a PEG ratio of 2.85. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Nvidia (NVDA) Gains As Market Dips: What You Should Know
Nvidia (NVDA - Free Report) closed at $416.10 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 13.03% over the past month. This has lagged the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. In that report, analysts expect Nvidia to post earnings of $3.32 per share. This would mark year-over-year growth of 472.41%. Meanwhile, our latest consensus estimate is calling for revenue of $16.04 billion, up 170.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.67 per share and revenue of $54.07 billion. These totals would mark changes of +219.46% and +81.81%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 38.17% higher. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Nvidia is holding a Forward P/E ratio of 38.44. For comparison, its industry has an average Forward P/E of 18.35, which means Nvidia is trading at a premium to the group.
We can also see that NVDA currently has a PEG ratio of 2.85. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.