Nvidia (NVDA) ended the recent trading session at $185.00, demonstrating a -2.17% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
Shares of the maker of graphics chips for gaming and artificial intelligence have appreciated by 2.9% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.69%, and the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. On that day, Nvidia is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 70.79%. Alongside, our most recent consensus estimate is anticipating revenue of $65.49 billion, indicating a 66.5% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.66 per share and revenue of $211.91 billion. These totals would mark changes of +55.85% and +62.39%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.4% rise in the Zacks Consensus EPS estimate. Nvidia is holding a Zacks Rank of #1 (Strong Buy) right now.
In the context of valuation, Nvidia is at present trading with a Forward P/E ratio of 40.55. This valuation marks a premium compared to its industry average Forward P/E of 31.04.
One should further note that NVDA currently holds a PEG ratio of 0.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NVDA's industry had an average PEG ratio of 3.3 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 20, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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