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Nvidia (NVDA) Exceeds Market Returns: Some Facts to Consider
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Nvidia (NVDA - Free Report) closed at $226.39 in the latest trading session, marking a +2.54% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.2%.
The stock of maker of graphics chips for gaming and artificial intelligence has risen by 12.35% in the past month, lagging the Computer and Technology sector's gain of 16.86% and overreaching the S&P 500's gain of 8.64%.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company is slated to reveal its earnings on May 20, 2026. On that day, Nvidia is projected to report earnings of $1.77 per share, which would represent year-over-year growth of 118.52%. Meanwhile, the latest consensus estimate predicts the revenue to be $78.75 billion, indicating a 78.73% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.13 per share and a revenue of $357.86 billion, representing changes of +70.44% and +65.72%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.28% upward. Nvidia presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 27.17. Its industry sports an average Forward P/E of 53.15, so one might conclude that Nvidia is trading at a discount comparatively.
It's also important to note that NVDA currently trades at a PEG ratio of 0.69. 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 1.09 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nvidia (NVDA) Exceeds Market Returns: Some Facts to Consider
Nvidia (NVDA - Free Report) closed at $226.39 in the latest trading session, marking a +2.54% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.2%.
The stock of maker of graphics chips for gaming and artificial intelligence has risen by 12.35% in the past month, lagging the Computer and Technology sector's gain of 16.86% and overreaching the S&P 500's gain of 8.64%.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company is slated to reveal its earnings on May 20, 2026. On that day, Nvidia is projected to report earnings of $1.77 per share, which would represent year-over-year growth of 118.52%. Meanwhile, the latest consensus estimate predicts the revenue to be $78.75 billion, indicating a 78.73% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.13 per share and a revenue of $357.86 billion, representing changes of +70.44% and +65.72%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.28% upward. Nvidia presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 27.17. Its industry sports an average Forward P/E of 53.15, so one might conclude that Nvidia is trading at a discount comparatively.
It's also important to note that NVDA currently trades at a PEG ratio of 0.69. 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 1.09 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.