In the latest trading session, Nvidia (NVDA) closed at $162.25, marking a -0.83% move from the previous day. This change lagged the S&P 500’s 0.95% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 3.62% over the past month, lagging the Computer and Technology sector’s loss of 2.82% and the S&P 500’s loss of 3.49% in that time.
Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. In that report, analysts expect Nvidia to post earnings of $1.27 per share. This would mark year-over-year growth of 22.12%. Our most recent consensus estimate is calling for quarterly revenue of $8.12 billion, up 24.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $33.94 billion. These totals would mark changes of +23.2% and +26.09%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 past month, the Zacks Consensus EPS estimate has moved 3.55% lower. Nvidia is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Nvidia currently has a Forward P/E ratio of 29.92. This valuation marks a premium compared to its industry’s average Forward P/E of 9.94.
We can also see that NVDA currently has a PEG ratio of 1.82. 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 industry currently had an average PEG ratio of 1.85 as of yesterday’s close.
The Semiconductor – General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.