Nvidia (NVDA - Free Report) closed at $127.08 in the latest trading session, marking a -1.92% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.71%. Meanwhile, the Dow lost 2.91%, and the Nasdaq, a tech-heavy index, lost 2.21%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 10.46% over the past month. This has lagged the Computer and Technology sector's loss of 6.7% and the S&P 500's loss of 8.68% in that time.
NVDA will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect NVDA to post earnings of $1.41 per share. This would mark a year-over-year decline of 18.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.70 billion, down 7.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.24 per share and revenue of $12.21 billion. These totals would mark changes of +47.15% and +25.73%, respectively, from last year.
Any recent changes to analyst estimates for NVDA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. NVDA is currently a Zacks Rank #4 (Sell).
Investors should also note NVDA's current valuation metrics, including its Forward P/E ratio of 17.9. This valuation marks a premium compared to its industry's average Forward P/E of 11.98.
Also, we should mention that NVDA has a PEG ratio of 1.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NVDA's industry had an average PEG ratio of 1.68 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 21% 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.