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Nvidia (NVDA) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, Nvidia (NVDA - Free Report) closed at $216.02, marking a +2.4% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 6.27% over the past month, outpacing the Computer and Technology sector's loss of 7.7% and lagging the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is expected to report EPS of $2.49, up 91.54% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $108.99 billion, showing a 91.19% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.3 per share and a revenue of $407.51 billion, indicating changes of +94.97% and +88.72%, respectively, from the former 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. 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 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. The Zacks Consensus EPS estimate has moved 0.56% higher within the past month. Nvidia presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Nvidia is currently being traded at a Forward P/E ratio of 22.69. This valuation marks a discount compared to its industry average Forward P/E of 32.25.
It's also important to note that NVDA currently trades at a PEG ratio of 1.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Nvidia (NVDA) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Nvidia (NVDA - Free Report) closed at $216.02, marking a +2.4% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 6.27% over the past month, outpacing the Computer and Technology sector's loss of 7.7% and lagging the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is expected to report EPS of $2.49, up 91.54% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $108.99 billion, showing a 91.19% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.3 per share and a revenue of $407.51 billion, indicating changes of +94.97% and +88.72%, respectively, from the former 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. 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 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. The Zacks Consensus EPS estimate has moved 0.56% higher within the past month. Nvidia presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Nvidia is currently being traded at a Forward P/E ratio of 22.69. This valuation marks a discount compared to its industry average Forward P/E of 32.25.
It's also important to note that NVDA currently trades at a PEG ratio of 1.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.