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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) ended the recent trading session at $203.53, demonstrating a -3.52% change from the preceding day's closing price. This change lagged the S&P 500's 0.79% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 2.81% over the past month, lagging the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Nvidia in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.09, signifying a 99.05% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $91.58 billion, up 95.91% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.1 per share and a revenue of $385.48 billion, demonstrating changes of +90.78% and +78.52%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nvidia. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, there's been a 1.24% rise in the Zacks Consensus EPS estimate. Nvidia is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 23.19 right now. Its industry sports an average Forward P/E of 57.17, 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 0.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NVDA's industry had an average PEG ratio of 1.01 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 25, finds itself in the top 11% echelons 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.
To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.
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Nvidia (NVDA) Registers a Bigger Fall Than the Market: Important Facts to Note
Nvidia (NVDA - Free Report) ended the recent trading session at $203.53, demonstrating a -3.52% change from the preceding day's closing price. This change lagged the S&P 500's 0.79% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 2.81% over the past month, lagging the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Nvidia in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.09, signifying a 99.05% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $91.58 billion, up 95.91% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.1 per share and a revenue of $385.48 billion, demonstrating changes of +90.78% and +78.52%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nvidia. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, there's been a 1.24% rise in the Zacks Consensus EPS estimate. Nvidia is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 23.19 right now. Its industry sports an average Forward P/E of 57.17, 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 0.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NVDA's industry had an average PEG ratio of 1.01 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 25, finds itself in the top 11% echelons 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.
To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.