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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know

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Nvidia (NVDA - Free Report) closed at $239.37 in the latest trading session, marking a +1.66% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.49%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.43%.

Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 12.03% over the past month. This has outpaced the Computer and Technology sector's gain of 3.18% and the S&P 500's gain of 2.9% 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 $1.66 per share. This would mark year-over-year growth of 107.5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.96 billion, up 34.16% from the prior-year quarter.

NVDA's full-year Zacks Consensus Estimates are calling for earnings of $5.56 per share and revenue of $10.77 billion. These results would represent year-over-year changes of -16.27% and -8.07%, respectively.

It is also important to note the recent changes to analyst estimates for NVDA. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 remained stagnant. NVDA is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, NVDA currently has a Forward P/E ratio of 42.33. This represents a premium compared to its industry's average Forward P/E of 24.61.

We can also see that NVDA currently has a PEG ratio of 4.15. 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. NVDA's industry had an average PEG ratio of 2.43 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.


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