Nvidia (NVDA) ended the recent trading session at $188.85, demonstrating a +1.26% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.19%. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.03%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 1.7% in the past month. In that same time, the Computer and Technology sector gained 0.02%, while the S&P 500 gained 0.54%.
Market participants will be closely following the financial results of Nvidia in its upcoming release. On that day, Nvidia is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 70.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $65.49 billion, up 66.5% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $4.66 per share and revenue of $211.91 billion. These results would represent year-over-year changes of +55.85% and +62.39%, respectively.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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, there's been a 0.64% rise in the Zacks Consensus EPS estimate. As of now, Nvidia holds a Zacks Rank of #2 (Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 39.99. This denotes a premium relative to the industry average Forward P/E of 29.03.
Investors should also note that NVDA has a PEG ratio of 0.86 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor - General industry stood at 3.02 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 40, finds itself in the top 17% echelons 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.
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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