Nvidia (NVDA - Free Report) closed the most recent trading day at $149.29, moving +0.35% from the previous trading session. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.08%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 17.07% in the past month. In that same time, the Computer and Technology sector gained 7.59%, while the S&P 500 gained 9.27%.
Investors will be hoping for strength from NVDA as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect NVDA to post earnings of $1.40 per share. This would mark a year-over-year decline of 18.6%. 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.
Investors might also notice recent changes to analyst estimates for NVDA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. NVDA is currently a Zacks Rank #3 (Hold).
Looking at its valuation, NVDA is holding a Forward P/E ratio of 20.56. Its industry sports an average Forward P/E of 12.93, so we one might conclude that NVDA is trading at a premium comparatively.
Meanwhile, NVDA's PEG ratio is currently 1.93. 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. The Semiconductor - General was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 12% 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.
To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.