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Nvidia (NVDA) Registers a Bigger Fall Than the Market: Important Facts to Note
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Nvidia (NVDA - Free Report) closed at $183.14 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 4.55% over the past month, outpacing the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.52, reflecting a 70.79% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $65.49 billion, up 66.5% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.66 per share and revenue of $211.91 billion. These totals would mark changes of +55.85% and +62.39%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 39.84 right now. This valuation marks a premium compared to its industry average Forward P/E of 32.26.
We can also see that NVDA currently has a PEG ratio of 0.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NVDA's industry had an average PEG ratio of 3.29 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 15% of all industries, numbering over 250.
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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Nvidia (NVDA) Registers a Bigger Fall Than the Market: Important Facts to Note
Nvidia (NVDA - Free Report) closed at $183.14 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 4.55% over the past month, outpacing the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.52, reflecting a 70.79% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $65.49 billion, up 66.5% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.66 per share and revenue of $211.91 billion. These totals would mark changes of +55.85% and +62.39%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 39.84 right now. This valuation marks a premium compared to its industry average Forward P/E of 32.26.
We can also see that NVDA currently has a PEG ratio of 0.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NVDA's industry had an average PEG ratio of 3.29 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 15% of all industries, numbering over 250.
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.