The latest trading session saw Nvidia (NVDA) ending at $412.31, denoting a +1.81% adjustment from its last day's close. This change outpaced the S&P 500's 1.2% gain on the day. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 1.16%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 6.89% in the past month. In that same time, the Computer and Technology sector lost 3.32%, while the S&P 500 lost 3.58%.
Market participants will be closely following the financial results of Nvidia in its upcoming release. The company plans to announce its earnings on November 21, 2023. The company is forecasted to report an EPS of $3.34, showcasing a 475.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.12 billion, up 171.72% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $54.4 billion, which would represent changes of +221.56% and +101.69%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Nvidia. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 0.81% higher. At present, Nvidia boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Nvidia is holding a Forward P/E ratio of 37.7. Its industry sports an average Forward P/E of 18.17, so one might conclude that Nvidia is trading at a premium comparatively.
One should further note that NVDA currently holds a PEG ratio of 2.79. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.47.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report