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Nvidia (NVDA) Gains As Market Dips: What You Should Know

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Nvidia (NVDA - Free Report) closed the most recent trading day at $146.76, moving +0.33% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.61%. Meanwhile, the Dow experienced a drop of 0.47%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 7.77% in the past month. In that same time, the Computer and Technology sector gained 3.03%, while the S&P 500 gained 3.07%.

Investors will be eagerly watching for the performance of Nvidia in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 20, 2024. In that report, analysts expect Nvidia to post earnings of $0.74 per share. This would mark year-over-year growth of 85%. In the meantime, our current consensus estimate forecasts the revenue to be $32.81 billion, indicating an 81.07% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.82 per share and a revenue of $124.9 billion, signifying shifts of +116.92% and +105.01%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% higher. As of now, Nvidia holds a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 51.8 right now. This signifies a premium in comparison to the average Forward P/E of 26.56 for its industry.

Also, we should mention that NVDA has a PEG ratio of 1.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 3.15.

The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 17% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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