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Nvidia (NVDA) Stock Declines While Market Improves: Some Information for Investors
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Nvidia (NVDA - Free Report) closed the most recent trading day at $132.65, moving -0.18% from the previous trading session. This change lagged the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 22.93% over the past month. This has outpaced the Computer and Technology sector's gain of 9.96% and the S&P 500's gain of 6.41% in that time.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company's upcoming EPS is projected at $0.74, signifying an 85% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $32.59 billion, up 79.88% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and a revenue of $124.17 billion, representing changes of +116.15% and +103.82%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% higher. Nvidia presently features a Zacks Rank of #2 (Buy).
In the context of valuation, Nvidia is at present trading with a Forward P/E ratio of 47.22. This denotes a premium relative to the industry's average Forward P/E of 25.22.
Investors should also note that NVDA has a PEG ratio of 1.13 right now. 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 average PEG ratio for the Semiconductor - General industry stood at 3.91 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Nvidia (NVDA) Stock Declines While Market Improves: Some Information for Investors
Nvidia (NVDA - Free Report) closed the most recent trading day at $132.65, moving -0.18% from the previous trading session. This change lagged the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 22.93% over the past month. This has outpaced the Computer and Technology sector's gain of 9.96% and the S&P 500's gain of 6.41% in that time.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company's upcoming EPS is projected at $0.74, signifying an 85% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $32.59 billion, up 79.88% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and a revenue of $124.17 billion, representing changes of +116.15% and +103.82%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% higher. Nvidia presently features a Zacks Rank of #2 (Buy).
In the context of valuation, Nvidia is at present trading with a Forward P/E ratio of 47.22. This denotes a premium relative to the industry's average Forward P/E of 25.22.
Investors should also note that NVDA has a PEG ratio of 1.13 right now. 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 average PEG ratio for the Semiconductor - General industry stood at 3.91 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.