Nvidia (NVDA) closed the latest trading day at $118.85, indicating a +1.58% change from the previous session’s end. The stock outpaced the S&P 500’s daily gain of 0.01%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.08%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 8.33% in the past month. In that same time, the Computer and Technology sector gained 1.03%, while the S&P 500 gained 1.21%.
The upcoming earnings release of Nvidia will be of great interest to investors. On that day, Nvidia is projected to report earnings of $0.74 per share, which would represent year-over-year growth of 85%. Meanwhile, the latest consensus estimate predicts the revenue to be $32.59 billion, indicating a 79.88% increase compared to the same quarter of the previous year.
NVDA’s full-year Zacks Consensus Estimates are calling for earnings of $2.81 per share and revenue of $124.17 billion. These results would represent year-over-year changes of +116.15% and +103.82%, respectively.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.51% higher. Nvidia presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 41.57. This denotes a premium relative to the industry’s average Forward P/E of 25.71.
One should further note that NVDA currently holds a PEG ratio of 1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Semiconductor – General industry had an average PEG ratio of 3.93 as trading concluded yesterday.
The Semiconductor – General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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