Nvidia (NVDA) ended the recent trading session at $178.18, demonstrating a -4.32% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 2.06%. Elsewhere, the Dow saw a downswing of 1.76%, while the tech-heavy Nasdaq depreciated by 2.39%.
The maker of graphics chips for gaming and artificial intelligence's stock has climbed by 1.38% in the past month, falling short of the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.63%.
The upcoming earnings release of Nvidia will be of great interest to investors. It is anticipated that the company will report an EPS of $1.52, marking a 70.79% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $65.59 billion, indicating a 66.78% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $212.6 billion, which would represent changes of +55.85% and +62.91%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Nvidia is currently a Zacks Rank #3 (Hold).
With respect to valuation, Nvidia is currently being traded at a Forward P/E ratio of 39.93. For comparison, its industry has an average Forward P/E of 33.05, which means Nvidia is trading at a premium to the group.
It is also worth noting that NVDA currently has a PEG ratio of 0.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry currently had an average PEG ratio of 3.29 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 35, putting it in the top 15% 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.
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NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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