Nvidia (NVDA) closed the most recent trading day at $423.17, moving -0.23% from the previous trading session. This change lagged the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 9.72% over the past month. This has outpaced the Computer and Technology sector's gain of 4.63% and the S&P 500's gain of 4.16% in that time.
Nvidia will be looking to display strength as it nears its next earnings release. On that day, Nvidia is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue of $11.01 billion, up 64.19% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $7.66 per share and revenue of $42.64 billion. These results would represent year-over-year changes of +129.34% and +58.08%, respectively.
It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 3.65% higher. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 55.35. For comparison, its industry has an average Forward P/E of 24.03, which means Nvidia is trading at a premium to the group.
Also, we should mention that NVDA has a PEG ratio of 2.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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% rated industries outperform the bottom half by a factor of 2 to 1.
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