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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
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Nvidia (NVDA - Free Report) closed the most recent trading day at $144.73, moving +0.68% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 12.31% over the past month. This has outpaced the Computer and Technology sector's gain of 8.88% and the S&P 500's gain of 7.92% 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. The company is expected to report EPS of $0.90, down 47.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, down 16.75% from the prior-year quarter.
It is also important to note the 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.
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. Within the past 30 days, our consensus EPS projection has moved 8.4% lower. NVDA is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, NVDA is holding a Forward P/E ratio of 21.3. Its industry sports an average Forward P/E of 14.95, so we one might conclude that NVDA is trading at a premium comparatively.
Investors should also note that NVDA has a PEG ratio of 2 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 254, which puts it in the bottom 1% 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.
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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
Nvidia (NVDA - Free Report) closed the most recent trading day at $144.73, moving +0.68% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 12.31% over the past month. This has outpaced the Computer and Technology sector's gain of 8.88% and the S&P 500's gain of 7.92% 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. The company is expected to report EPS of $0.90, down 47.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, down 16.75% from the prior-year quarter.
It is also important to note the 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.
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. Within the past 30 days, our consensus EPS projection has moved 8.4% lower. NVDA is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, NVDA is holding a Forward P/E ratio of 21.3. Its industry sports an average Forward P/E of 14.95, so we one might conclude that NVDA is trading at a premium comparatively.
Investors should also note that NVDA has a PEG ratio of 2 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 254, which puts it in the bottom 1% 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.