Nvidia (NVDA) closed the most recent trading day at $150.82, moving -0.46% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 3.16% over the past month, lagging the Computer and Technology sector’s loss of 0.73% and the S&P 500’s loss of 1% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be August 24, 2022. On that day, Nvidia is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 22.12%. Our most recent consensus estimate is calling for quarterly revenue of $8.12 billion, up 24.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.41 per share and revenue of $33.86 billion, which would represent changes of +21.85% and +25.81%, respectively, from the prior year.
Any recent changes to analyst estimates for Nvidia should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.75% lower. Nvidia is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 28 right now. This represents a premium compared to its industry’s average Forward P/E of 10.01.
Investors should also note that NVDA has a PEG ratio of 1.93 right now. 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. The Semiconductor – General industry currently had an average PEG ratio of 1.88 as of yesterday’s close.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 19% 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.
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