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Nvidia (NVDA) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Nvidia (NVDA - Free Report) closed at $217.09, marking a +1.38% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 1.11%.
The maker of graphics chips for gaming and artificial intelligence's stock has dropped by 3.66% in the past month, falling short of the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.49, marking a 91.54% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $108.99 billion, up 91.19% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $9.3 per share and a revenue of $407.5 billion, demonstrating changes of +94.97% and +88.71%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.56% higher. At present, Nvidia boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Nvidia is presently being traded at a Forward P/E ratio of 23.03. This expresses a discount compared to the average Forward P/E of 32.6 of its industry.
It is also worth noting that NVDA currently has a PEG ratio of 1.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NVDA's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
View the Zacks #1 Rank List
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Nvidia (NVDA) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Nvidia (NVDA - Free Report) closed at $217.09, marking a +1.38% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 1.11%.
The maker of graphics chips for gaming and artificial intelligence's stock has dropped by 3.66% in the past month, falling short of the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.49, marking a 91.54% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $108.99 billion, up 91.19% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $9.3 per share and a revenue of $407.5 billion, demonstrating changes of +94.97% and +88.71%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.56% higher. At present, Nvidia boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Nvidia is presently being traded at a Forward P/E ratio of 23.03. This expresses a discount compared to the average Forward P/E of 32.6 of its industry.
It is also worth noting that NVDA currently has a PEG ratio of 1.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NVDA's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.