In the latest trading session, Nvidia (NVDA - Free Report) closed at $205.67, marking a -0.16% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.65%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 12.39% over the past month, lagging the Computer and Technology sector's loss of 3.51% and the S&P 500's loss of 2.56% in that time.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be November 15, 2018. On that day, NVDA is projected to report earnings of $1.91 per share, which would represent year-over-year growth of 43.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.24 billion, up 22.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.90 per share and revenue of $12.99 billion. These totals would mark changes of +60.57% and +33.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NVDA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NVDA is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NVDA has a Forward P/E ratio of 26.09 right now. For comparison, its industry has an average Forward P/E of 12.44, which means NVDA is trading at a premium to the group.
Also, we should mention that NVDA has a PEG ratio of 2.45. 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. NVDA's industry had an average PEG ratio of 1.87 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.