Nvidia (NVDA) closed at USD 636.50 in the last trading session, a movement of -1.39% from the previous day. That change fell short of the S&P 500’s daily gain of 0.36%.
To date, the shares of the manufacturer of graphics chips for games and artificial intelligence had gained 14.51% in the past month. Over the same period, the computer and technology sector rose 9.06% while the S&P 500 rose 5.21%.
Wall Street will be looking for a positive record from the NVDA as it nears its next earnings report. The company is expected to post earnings per share of $ 3.25, an 80.56% increase over the prior year quarter. The Zacks Consensus estimate for sales predicts net sales of $ 5.39 billion, up 75.11% from the same period last year.
For the full year, our Zacks Consensus estimates project earnings per share of $ 13.53 and revenue of $ 22.46 billion, a year-over-year change of + 35.3% and + 34.68%, respectively.
Investors may also note the recent changes in analyst estimates for NVDA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimates as a good sign of the company’s business outlook.
Research shows that these estimated revisions correlate directly with the short-term dynamics of the stock price. To take advantage of this, we developed the Zacks Rank, a proprietary model that takes these estimation changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive, externally verified track record of outperformance, with the # 1 stocks posting average annual returns since 1988 of + 25% Zacks Consensus EPS estimate rose 1.09% last month. NVDA currently holds a Zacks Rank 1 (Strong Buy).
In terms of valuation, NVDA holds a forward P / E of 45.26. For comparison, the industry has an average forward P / E of 25.28, which means NVDA is trading at a premium to the group.
The NVDA’s PEG rate is now 3.01. This metric is used similarly to the famous P / E ratio, but the P / E ratio also takes into account the stock’s expected earnings growth rate. The NVDA industry had an average PEG rate of 3.01 at yesterday’s closing price.
The semiconductor industry is part of the computer and technology sector. This industry currently has a Zacks industry ranking of 53, making it one of the top 21% of all over 250 industries.
Zacks Industry Rank measures the strength of our individual industry groups by measuring the average Zacks rank of each stock within the groups. Our research shows that the industries with the top 50% outperform the bottom half by a factor of 2 to 1.
Make sure you use zacks. Com to keep track of all of these and other metrics related to stock movement in upcoming trading sessions.
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