Nvidia (NVDA - Free Report) closed the most recent trading day at $277.81, moving -0.26% from the previous trading session. This change outpaced the S&P 500's 0.44% loss on the day. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 0.26%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 12.99% over the past month. This has outpaced the Computer and Technology sector's gain of 4.58% and the S&P 500's gain of 3.59% in that time.
Investors will be hoping for strength from NVDA as it approaches its next earnings release, which is expected to be November 8, 2018. The company is expected to report EPS of $1.93, up 45.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.25 billion, up 23.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.96 per share and revenue of $13.02 billion, which would represent changes of +61.79% and +34.06%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NVDA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 1.02% higher. NVDA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, NVDA is currently trading at a Forward P/E ratio of 34.99. This represents a premium compared to its industry's average Forward P/E of 12.52.
Investors should also note that NVDA has a PEG ratio of 3.28 right now. 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 1.72 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 34% 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.