In the latest market close, Nvidia (NVDA) reached $118.65, with a +1.71% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 21.93% in the past month. In that same time, the Computer and Technology sector lost 1.35%, while the S&P 500 gained 1.02%.
Analysts and investors alike will be keeping a close eye on the performance of Nvidia in its upcoming earnings disclosure. The company's earnings report is set to go public on February 26, 2025. The company is predicted to post an EPS of $0.84, indicating a 61.54% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $37.72 billion, indicating a 70.68% upward movement from the same quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.12% upward. Nvidia presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Nvidia currently has a Forward P/E ratio of 27.73. This valuation marks a premium compared to its industry's average Forward P/E of 26.47.
It is also worth noting that NVDA currently has a PEG ratio of 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 1.37.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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