Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know
Nvidia (NVDA) closed the most recent trading day at $222.22, moving +1.65% from the previous trading session. This change outpaced the S&P 500's 0.34% gain on the day.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 0.17% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.7% and lagged the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be November 17, 2021. In that report, analysts expect NVDA to post earnings of $1.11 per share. This would mark year-over-year growth of 52.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.83 billion, up 44.46% from the year-ago period.
NVDA's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $25.84 billion. These results would represent year-over-year changes of +65.6% and +54.96%, respectively.
It is also important to note the recent changes to analyst estimates for NVDA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. NVDA is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that NVDA has a Forward P/E ratio of 52.85 right now. Its industry sports an average Forward P/E of 19.17, so we one might conclude that NVDA is trading at a premium comparatively.
We can also see that NVDA currently has a PEG ratio of 2.71. 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. NVDA's industry had an average PEG ratio of 2.67 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 23, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming 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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
