Nvidia (NVDA) closed the most recent trading day at $96.30, moving -1.37% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.57%. Elsewhere, the Dow saw a downswing of 0.84%, while the tech-heavy Nasdaq depreciated by 2.15%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 8.73% in the past month. In that same time, the Computer and Technology sector lost 16.01%, while the S&P 500 lost 12.16%.
Analysts and investors alike will be keeping a close eye on the performance of Nvidia in its upcoming earnings disclosure. The company's earnings report is set to go public on May 28, 2025. The company is forecasted to report an EPS of $0.93, showcasing a 52.46% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.22 billion, up 65.94% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.41 per share and a revenue of $198.54 billion, demonstrating changes of +47.49% and +52.14%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.47% rise in the Zacks Consensus EPS estimate. Nvidia presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Nvidia is presently being traded at a Forward P/E ratio of 22.16. This indicates a discount in contrast to its industry's Forward P/E of 22.29.
Meanwhile, NVDA's PEG ratio is currently 0.86. 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. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 1.64.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 21, this industry ranks in the top 9% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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