In the latest trading session, Nvidia (NVDA - Free Report) closed at $188.21, marking a +1.9% move from the previous day. This move outpaced the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 0.3%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 9.32% over the past month. This has outpaced the Computer and Technology sector's gain of 3.73% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from NVDA as it approaches its next earnings release. In that report, analysts expect NVDA to post earnings of $0.82 per share. This would mark a year-over-year decline of 60%. Meanwhile, our latest consensus estimate is calling for revenue of $2.20 billion, down 31.36% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.33 per share and revenue of $11.19 billion. These totals would mark changes of -19.73% and -4.46%, respectively, from last 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 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. 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 has moved 0.56% lower. 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 34.69 right now. For comparison, its industry has an average Forward P/E of 18.69, which means NVDA is trading at a premium to the group.
It is also worth noting that NVDA currently has a PEG ratio of 3.73. 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. The Semiconductor - General was holding an average PEG ratio of 2.19 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 61, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.