We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nvidia (NVDA) Beats Stock Market Upswing: What Investors Need to Know
Read MoreHide Full Article
The most recent trading session ended with Nvidia (NVDA - Free Report) standing at $598.73, reflecting a +0.37% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.43%.
Shares of the maker of graphics chips for gaming and artificial intelligence witnessed a gain of 22.17% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.67% and the S&P 500's gain of 2.08%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company is expected to report EPS of $4.49, up 410.23% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $20.1 billion, indicating a 232.16% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.31 per share and a revenue of $58.92 billion, indicating changes of +268.56% and +118.42%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Nvidia is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 48.48. This expresses a premium compared to the average Forward P/E of 23.76 of its industry.
It is also worth noting that NVDA currently has a PEG ratio of 3.59. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 3.28.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 9% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nvidia (NVDA) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with Nvidia (NVDA - Free Report) standing at $598.73, reflecting a +0.37% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.43%.
Shares of the maker of graphics chips for gaming and artificial intelligence witnessed a gain of 22.17% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.67% and the S&P 500's gain of 2.08%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company is expected to report EPS of $4.49, up 410.23% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $20.1 billion, indicating a 232.16% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.31 per share and a revenue of $58.92 billion, indicating changes of +268.56% and +118.42%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Nvidia is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 48.48. This expresses a premium compared to the average Forward P/E of 23.76 of its industry.
It is also worth noting that NVDA currently has a PEG ratio of 3.59. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 3.28.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 9% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.