Nvidia (NVDA) ended the recent trading session at $226.44, demonstrating a -1.24% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq decreased by 0.44%.
The maker of graphics chips for gaming and artificial intelligence's shares have seen an increase of 5.03% over the last month, surpassing the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 2.36%.
Market participants will be closely following the financial results of Nvidia in its upcoming release. The company's upcoming EPS is projected at $2.47, signifying a 90.00% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $109.02 billion, up 91.24% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.25 per share and a revenue of $406.05 billion, representing changes of +93.92% and +88.04%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Nvidia is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 24.8. Its industry sports an average Forward P/E of 33.56, so one might conclude that Nvidia is trading at a discount comparatively.
Also, we should mention that NVDA has a PEG ratio of 1.77. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).