Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
Nvidia (NVDA) closed the most recent trading day at $619.12, moving +1.39% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.18%.
Coming into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 21.78% in the past month. In that same time, the Computer and Technology sector gained 9.78%, while the S&P 500 gained 6.99%.
NVDA will be looking to display strength as it nears its next earnings release, which is expected to be May 26, 2021. On that day, NVDA is projected to report earnings of $3.26 per share, which would represent year-over-year growth of 81.11%. Meanwhile, our latest consensus estimate is calling for revenue of $5.4 billion, up 75.33% from the prior-year quarter.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $13.56 per share and revenue of $22.49 billion. These results would represent year-over-year changes of +35.6% and +34.9%, respectively.
Any recent changes to analyst estimates for NVDA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 1.09% higher within the past month. NVDA is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that NVDA has a Forward P/E ratio of 45.03 right now. This represents a premium compared to its industry's average Forward P/E of 25.01.
Meanwhile, NVDA's PEG ratio is currently 2.99. 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. The Semiconductor - General was holding an average PEG ratio of 2.99 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.
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