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Nvidia (NVDA) Surpasses Market Returns: Some Facts Worth Knowing
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Nvidia (NVDA - Free Report) closed at $903.56 in the latest trading session, marking a +0.12% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.12%.
The maker of graphics chips for gaming and artificial intelligence's shares have seen an increase of 16.21% over the last month, surpassing the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.
The upcoming earnings release of Nvidia will be of great interest to investors. In that report, analysts expect Nvidia to post earnings of $5.48 per share. This would mark year-over-year growth of 402.75%. Simultaneously, our latest consensus estimate expects the revenue to be $24.17 billion, showing a 236.08% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.84 per share and revenue of $105.13 billion, which would represent changes of +83.95% and +72.56%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.09% higher within the past month. Right now, Nvidia possesses a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Nvidia is currently being traded at a Forward P/E ratio of 37.85. This represents a premium compared to its industry's average Forward P/E of 29.64.
It's also important to note that NVDA currently trades at a PEG ratio of 1.22. 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 2.55 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.
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Nvidia (NVDA) Surpasses Market Returns: Some Facts Worth Knowing
Nvidia (NVDA - Free Report) closed at $903.56 in the latest trading session, marking a +0.12% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.12%.
The maker of graphics chips for gaming and artificial intelligence's shares have seen an increase of 16.21% over the last month, surpassing the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.
The upcoming earnings release of Nvidia will be of great interest to investors. In that report, analysts expect Nvidia to post earnings of $5.48 per share. This would mark year-over-year growth of 402.75%. Simultaneously, our latest consensus estimate expects the revenue to be $24.17 billion, showing a 236.08% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.84 per share and revenue of $105.13 billion, which would represent changes of +83.95% and +72.56%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.09% higher within the past month. Right now, Nvidia possesses a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Nvidia is currently being traded at a Forward P/E ratio of 37.85. This represents a premium compared to its industry's average Forward P/E of 29.64.
It's also important to note that NVDA currently trades at a PEG ratio of 1.22. 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 2.55 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.