In the latest trading session, Nvidia (NVDA) closed at $174.82, marking a -0.14% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 7.25% over the past month. This has outpaced the Computer and Technology sector's gain of 6.51% and the S&P 500's gain of 4% 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 August 15, 2019. On that day, NVDA is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 40.72%. Meanwhile, our latest consensus estimate is calling for revenue of $2.55 billion, down 18.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $10.88 billion. These totals would mark changes of -20.63% and -7.15%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NVDA. 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. 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. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. NVDA is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NVDA currently has a Forward P/E ratio of 33.2. This valuation marks a premium compared to its industry's average Forward P/E of 18.71.
We can also see that NVDA currently has a PEG ratio of 3.54. 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 2.38 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.