In the latest trading session, Nvidia (NVDA) closed at $189.86, marking a +2.4% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.9%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 0.3% outpaced the Computer and Technology sector's loss of 1.96% and the S&P 500's loss of 0.16%.
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 February 25, 2026. The company's earnings per share (EPS) are projected to be $1.52, reflecting a 70.79% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $65.56 billion, showing a 66.68% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $212.62 billion, representing changes of +55.85% and +62.93%, respectively, from the prior year.
Investors might also notice 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, 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 1.22% rise in the Zacks Consensus EPS estimate. Nvidia currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 25.33. This expresses a discount compared to the average Forward P/E of 26.96 of its industry.
Also, we should mention that NVDA has a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry had an average PEG ratio of 2 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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