In the latest trading session, Nvidia (NVDA - Free Report) closed at $179.77, marking a -1.77% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 2.79% in the past month. In that same time, the Computer and Technology sector gained 2.84%, while the S&P 500 gained 2.62%.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be May 16, 2019. The company is expected to report EPS of $0.82, down 60% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.20 billion, down 31.36% from the year-ago period.
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.
It is also important to note the recent changes to analyst estimates for NVDA. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NVDA currently has a Zacks Rank of #3 (Hold).
Investors should also note NVDA's current valuation metrics, including its Forward P/E ratio of 34.37. This represents a premium compared to its industry's average Forward P/E of 19.6.
Also, we should mention that NVDA has a PEG ratio of 3.7. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.