In the latest trading session, Nvidia (NVDA - Free Report) closed at $153.73, marking a +0.44% move from the previous day. This change outpaced the S&P 500's 0.33% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.01%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 17.55% over the past month, lagging the Computer and Technology sector's loss of 1.56% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from NVDA as it approaches its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $1.41, down 18.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.70 billion, down 7.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.24 per share and revenue of $12.21 billion, which would represent changes of +47.15% and +25.73%, respectively, from the prior year.
Any recent changes to analyst estimates for NVDA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 9.79% lower. NVDA currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that NVDA has a Forward P/E ratio of 21.15 right now. Its industry sports an average Forward P/E of 12.27, so we one might conclude that NVDA is trading at a premium comparatively.
Investors should also note that NVDA has a PEG ratio of 1.98 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. NVDA's industry had an average PEG ratio of 1.82 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 175, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.