The latest trading session saw Nvidia (NVDA) ending at $139.34, denoting a -1.36% adjustment from its last day’s close. The stock’s change was less than the S&P 500’s daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 0.56%.
Shares of the maker of graphics chips for gaming and artificial intelligence witnessed a gain of 20.73% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.83% and the S&P 500’s gain of 1.83%.
The upcoming earnings release of Nvidia will be of great interest to investors. The company’s earnings report is expected on November 20, 2024. The company is predicted to post an EPS of $0.74, indicating an 85% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $32.74 billion, reflecting an 80.69% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $124.66 billion. These totals would mark changes of +116.92% and +104.63%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Nvidia possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 50.12. This valuation marks a premium compared to its industry’s average Forward P/E of 23.78.
One should further note that NVDA currently holds a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Semiconductor – General stocks are, on average, holding a PEG ratio of 4.09 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 183, positioning it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report