Nvidia (NVDA - Free Report) closed at $184.33 in the latest trading session, marking a +1.3% move from the prior day. This change outpaced the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 1.24% over the past month. This has lagged the Computer and Technology sector's gain of 1.8% and outpaced the S&P 500's gain of 0.59% in that time.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. In that report, analysts expect NVDA to post earnings of $1.57 per share. This would mark a year-over-year decline of 14.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.90 billion, down 8.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $10.73 billion. These totals would mark changes of -19.58% and -8.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NVDA. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.55% lower. NVDA is currently a Zacks Rank #3 (Hold).
In terms of valuation, NVDA is currently trading at a Forward P/E ratio of 34.06. For comparison, its industry has an average Forward P/E of 18.72, which means NVDA is trading at a premium to the group.
It is also worth noting that NVDA currently has a PEG ratio of 3.56. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.98 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 221, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.