In the latest trading session, Nvidia (NVDA) closed at $198.87, marking a +1.2% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 1.6%.
The maker of graphics chips for gaming and artificial intelligence's stock has climbed by 8.01% in the past month, exceeding the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.15%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company is predicted to post an EPS of $1.76, indicating a 117.28% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $78.66 billion, reflecting a 78.52% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.03 per share and a revenue of $352.22 billion, signifying shifts of +68.34% and +63.11%, respectively, from the last year.
Any recent changes to analyst estimates for Nvidia should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.6% higher. Nvidia is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 24.46. Its industry sports an average Forward P/E of 36.76, so one might conclude that Nvidia is trading at a discount comparatively.
It's also important to note that NVDA currently trades at a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General industry had an average PEG ratio of 1.99 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).