In the latest trading session, Nvidia (NVDA) closed at $132.61, marking a -1.32% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.61%. At the same time, the Dow lost 1.91%, and the tech-heavy Nasdaq lost 1.41%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 35.89% over the past month. This has outpaced the Computer and Technology sector's gain of 18.62% and the S&P 500's gain of 12.65% in that time.
Market participants will be closely following the financial results of Nvidia in its upcoming release. The company plans to announce its earnings on May 28, 2025. The company is forecasted to report an EPS of $0.87, showcasing a 42.62% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.71 billion, up 63.99% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.24 per share and revenue of $194.17 billion, indicating changes of +41.81% and +48.79%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% lower. Currently, Nvidia is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 31.7 right now. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 31.7.
It is also worth noting that NVDA currently has a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NVDA's industry had an average PEG ratio of 2.24 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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