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Nvidia (NVDA) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Nvidia (NVDA - Free Report) closed at $157.21, marking a -1.88% move from the previous day. This move lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.78%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 11.44% in the past month. In that same time, the Computer and Technology sector gained 8%, while the S&P 500 gained 5.97%.
NVDA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.15, down 40.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.55 billion, down 18.47% from the prior-year quarter.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $5.30 per share and revenue of $10.90 billion. These results would represent year-over-year changes of -20.18% and -6.97%, respectively.
Investors should also note any recent changes to analyst estimates for NVDA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.57% higher within the past month. NVDA is currently a Zacks Rank #3 (Hold).
Digging into valuation, NVDA currently has a Forward P/E ratio of 30.24. For comparison, its industry has an average Forward P/E of 16.62, which means NVDA is trading at a premium to the group.
It is also worth noting that NVDA currently has a PEG ratio of 3.22. 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 1.87 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Nvidia (NVDA - Free Report) closed at $157.21, marking a -1.88% move from the previous day. This move lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.78%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 11.44% in the past month. In that same time, the Computer and Technology sector gained 8%, while the S&P 500 gained 5.97%.
NVDA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.15, down 40.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.55 billion, down 18.47% from the prior-year quarter.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $5.30 per share and revenue of $10.90 billion. These results would represent year-over-year changes of -20.18% and -6.97%, respectively.
Investors should also note any recent changes to analyst estimates for NVDA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.57% higher within the past month. NVDA is currently a Zacks Rank #3 (Hold).
Digging into valuation, NVDA currently has a Forward P/E ratio of 30.24. For comparison, its industry has an average Forward P/E of 16.62, which means NVDA is trading at a premium to the group.
It is also worth noting that NVDA currently has a PEG ratio of 3.22. 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 1.87 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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.