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Why the Market Dipped But Nvidia (NVDA) Gained Today
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In the latest trading session, Nvidia (NVDA - Free Report) closed at $870.39, marking a +1.97% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.95% for the day. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq lost 0.84%.
The maker of graphics chips for gaming and artificial intelligence's shares have seen a decrease of 7.14% over the last month, not keeping up with the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78%.
Market participants will be closely following the financial results of Nvidia in its upcoming release. The company is forecasted to report an EPS of $5.48, showcasing a 402.75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $24.17 billion, indicating a 236.08% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $23.84 per share and a revenue of $105.13 billion, demonstrating changes of +83.95% and +72.56%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.09% upward. Nvidia presently features a Zacks Rank of #1 (Strong Buy).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 35.8. This expresses a premium compared to the average Forward P/E of 24.57 of its industry.
It's also important to note that NVDA currently trades at a PEG ratio of 1.16. 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. The average PEG ratio for the Semiconductor - General industry stood at 2.25 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why the Market Dipped But Nvidia (NVDA) Gained Today
In the latest trading session, Nvidia (NVDA - Free Report) closed at $870.39, marking a +1.97% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.95% for the day. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq lost 0.84%.
The maker of graphics chips for gaming and artificial intelligence's shares have seen a decrease of 7.14% over the last month, not keeping up with the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78%.
Market participants will be closely following the financial results of Nvidia in its upcoming release. The company is forecasted to report an EPS of $5.48, showcasing a 402.75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $24.17 billion, indicating a 236.08% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $23.84 per share and a revenue of $105.13 billion, demonstrating changes of +83.95% and +72.56%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.09% upward. Nvidia presently features a Zacks Rank of #1 (Strong Buy).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 35.8. This expresses a premium compared to the average Forward P/E of 24.57 of its industry.
It's also important to note that NVDA currently trades at a PEG ratio of 1.16. 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. The average PEG ratio for the Semiconductor - General industry stood at 2.25 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.