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Nvidia (NVDA) Beats Stock Market Upswing: What Investors Need to Know
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Nvidia (NVDA - Free Report) closed at $181.88 in the latest trading session, marking a +2.07% move from the prior day. This change outpaced the S&P 500's 0.26% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.48%.
The stock of maker of graphics chips for gaming and artificial intelligence has risen by 2.3% in the past month, lagging the Computer and Technology sector's gain of 7.4% and the S&P 500's gain of 2.87%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company's upcoming EPS is projected at $1.23, signifying a 51.85% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $54.52 billion, indicating a 55.4% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.45 per share and a revenue of $204.5 billion, representing changes of +48.83% and +56.71%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3% higher. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Nvidia currently has a Forward P/E ratio of 40.05. Its industry sports an average Forward P/E of 40.05, so one might conclude that Nvidia is trading at no noticeable deviation comparatively.
One should further note that NVDA currently holds a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor - General stocks are, on average, holding a PEG ratio of 4.65 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Nvidia (NVDA) Beats Stock Market Upswing: What Investors Need to Know
Nvidia (NVDA - Free Report) closed at $181.88 in the latest trading session, marking a +2.07% move from the prior day. This change outpaced the S&P 500's 0.26% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.48%.
The stock of maker of graphics chips for gaming and artificial intelligence has risen by 2.3% in the past month, lagging the Computer and Technology sector's gain of 7.4% and the S&P 500's gain of 2.87%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company's upcoming EPS is projected at $1.23, signifying a 51.85% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $54.52 billion, indicating a 55.4% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.45 per share and a revenue of $204.5 billion, representing changes of +48.83% and +56.71%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3% higher. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Nvidia currently has a Forward P/E ratio of 40.05. Its industry sports an average Forward P/E of 40.05, so one might conclude that Nvidia is trading at no noticeable deviation comparatively.
One should further note that NVDA currently holds a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor - General stocks are, on average, holding a PEG ratio of 4.65 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.