Nvidia (NVDA) closed the most recent trading day at $110.71, moving -0.2% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.64%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 8.83% over the past month. This has lagged the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% in that time.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company is slated to reveal its earnings on May 28, 2025. The company is predicted to post an EPS of $0.93, indicating a 52.46% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $43.22 billion, up 65.94% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.41 per share and revenue of $198.54 billion, indicating changes of +47.49% and +52.14%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.47% increase. Nvidia is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Nvidia is presently being traded at a Forward P/E ratio of 25.18. This indicates a premium in contrast to its industry's Forward P/E of 24.56.
We can additionally observe that NVDA currently boasts a PEG ratio of 0.98. 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. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 1.69.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
