Nvidia (NVDA) closed at $109.02 in the latest trading session, marking a +0.27% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.
The maker of graphics chips for gaming and artificial intelligence's shares have seen an increase of 0.32% over the last month, not keeping up with the Computer and Technology sector's gain of 0.6% and outstripping the S&P 500's loss of 0.84%.
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 May 28, 2025. The company is expected to report EPS of $0.87, up 42.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.68 billion, up 63.87% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.24 per share and a revenue of $193.39 billion, representing changes of +41.81% and +48.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.48% lower. Currently, Nvidia is carrying a Zacks Rank of #3 (Hold).
Investors should also note Nvidia's current valuation metrics, including its Forward P/E ratio of 25.66. This represents no noticeable deviation compared to its industry's average Forward P/E of 25.66.
It's also important to note that NVDA currently trades at a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General industry currently had an average PEG ratio of 1.91 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.
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.
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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