In the latest trading session, Nvidia (NVDA) closed at $184.97, marking a +1.18% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.14%.
The maker of graphics chips for gaming and artificial intelligence's stock has dropped by 1.84% in the past month, exceeding the Computer and Technology sector's loss of 4.05% and lagging the S&P 500's loss of 1.43%.
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 upcoming EPS is projected at $1.52, signifying a 70.79% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $65.56 billion, up 66.68% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $4.66 per share and revenue of $212.62 billion. These results would represent year-over-year changes of +55.85% and +62.93%, respectively.
Investors should also note any recent changes to analyst estimates for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. Nvidia is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Nvidia is currently exchanging hands at a Forward P/E ratio of 24.97. This denotes a discount relative to the industry average Forward P/E of 33.42.
Meanwhile, NVDA's PEG ratio is currently 0.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NVDA's industry had an average PEG ratio of 2.04 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 206, finds itself in the bottom 16% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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