Nvidia (NVDA) ended the recent trading session at $140.41, demonstrating a +0.61% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.22%. On the other hand, the Dow registered a loss of 0.33%, and the technology-centric Nasdaq increased by 0.76%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 12.99% over the past month. This has outpaced the Computer and Technology sector's gain of 2.29% and the S&P 500's gain of 1.47% in that time.
The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. The company is scheduled to release its earnings on November 20, 2024. The company is forecasted to report an EPS of $0.74, showcasing an 85% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.74 billion, up 80.69% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.82 per share and a revenue of $124.66 billion, signifying shifts of +116.92% and +104.63%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Nvidia possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Nvidia is currently being traded at a Forward P/E ratio of 49.52. This expresses a premium compared to the average Forward P/E of 23.93 of its industry.
One should further note that NVDA currently holds a PEG ratio of 1.39. 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 3.92 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 29% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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