Nvidia (NVDA) closed at $124.58 in the latest trading session, marking a +1.4% move from the prior day. The stock’s change was more than the S&P 500’s daily gain of 0.2%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.21%.
The the stock of maker of graphics chips for gaming and artificial intelligence has risen by 1.46% in the past month, leading the Computer and Technology sector’s loss of 5.85% and the S&P 500’s loss of 1.49%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company’s earnings report is expected on August 28, 2024. The company’s earnings per share (EPS) are projected to be $0.63, reflecting a 133.33% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $28.24 billion, reflecting a 109.04% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.69 per share and a revenue of $117.82 billion, indicating changes of +106.92% and +93.39%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained steady. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 45.71. This represents a premium compared to its industry’s average Forward P/E of 23.28.
It’s also important to note that NVDA currently trades at a PEG ratio of 1.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Semiconductor – General industry was having an average PEG ratio of 3.6.
The Semiconductor – General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 215, placing it within the bottom 16% of over 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.
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 Report
