Nvidia (NVDA) closed at $181.88 in the latest trading session, marking a +2.07% move from the prior day. This change outpaced the S&P 500’s 0.26% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.48%.
The stock of maker of graphics chips for gaming and artificial intelligence has risen by 2.3% in the past month, lagging the Computer and Technology sector’s gain of 7.4% and the S&P 500’s gain of 2.87%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company’s upcoming EPS is projected at $1.23, signifying a 51.85% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $54.52 billion, indicating a 55.4% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.45 per share and a revenue of $204.5 billion, representing changes of +48.83% and +56.71%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 3% higher. At present, Nvidia boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Nvidia currently has a Forward P/E ratio of 40.05. Its industry sports an average Forward P/E of 40.05, so one might conclude that Nvidia is trading at no noticeable deviation comparatively.
One should further note that NVDA currently holds a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. Semiconductor – General stocks are, on average, holding a PEG ratio of 4.65 based on yesterday’s closing prices.
The Semiconductor – General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.
