[ad_1]
In the most recent trading session, NVIDIA (NVDA) closed at $598.73, representing a +0.37% increase from the previous trading day’s closing price. The stock outpaced the S&P 500’s daily gain of 0.29%. Meanwhile, the Dow Jones Industrial Average fell 0.25%, while the tech-heavy Nasdaq rose 0.43%.
Shares of the gaming and artificial intelligence graphics chip maker’s stock rose 22.17% from the previous month, outpacing the Computer & Technology sector’s gain of 3.67% and the S&P 500’s gain of 2.08%.
Nvidia’s upcoming earnings release will be of great interest to investors. The company is expected to report EPS of $4.49, up 410.23% year-over-year. Meanwhile, our current consensus estimate is projecting revenue of $20.1 billion, representing year-over-year growth of 232.16%.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $12.31 per share and revenue of $58.92 billion, which would represent changes of +268.56% and +118.42%, respectively, from the prior year. .
It is also important to note recent changes to analyst estimates for Nvidia. Recent revisions tend to reflect the latest short-term business trends. Therefore, a positive estimate change means the analysts are optimistic about the company’s business and profitability.
Empirical research shows that these estimate revisions are directly correlated with impending stock movements. To benefit from this, we have created the Zacks Rank, a proprietary model that incorporates these estimate changes to provide an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. is producing. Over the past 30 days, his Zacks Consensus EPS estimate has moved 0.11% higher. Nvidia currently carries a Zacks Rank #2 (Buy).
In terms of valuation, NVIDIA is currently trading at a Forward P/E ratio of 48.48. This represents a premium compared to its industry’s average Forward P/E of 23.76.
We also note that NVDA’s current PEG ratio is 3.59. This popular metric is similar to the widely-known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Semiconductor-General industry was 3.28.
Semiconductors – General Industries is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 9% 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% of industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to track these and other stock price movement metrics during upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today you can download 7 Best Stocks for the Next 30 Days.Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Click here to read this article on Zacks.com.
Zacks Investment Research
[ad_2]
Source link
