Nvidia (NVDA) Rises As Market Takes a Dip: Key Facts

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In the latest trading session, Nvidia (NVDA) closed at $903.99, marking a +0.58% move from the previous day. The stock’s performance was ahead of the S&P 500’s daily loss of 0.02%. Elsewhere, the Dow saw a downswing of 0.21%, while the tech-heavy Nasdaq appreciated by 0.29%.

Shares of the maker of graphics chips for gaming and artificial intelligence witnessed a gain of 1.92% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.39% and the S&P 500’s gain of 1.29%.

The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company is slated to reveal its earnings on May 22, 2024. The company’s earnings per share (EPS) are projected to be $5.49, reflecting a 403.67% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $24.17 billion, showing a 236.08% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.94 per share and a revenue of $106.05 billion, signifying shifts of +84.72% and +74.07%, respectively, from the last year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nvidia. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, there’s been a 0.44% rise in the Zacks Consensus EPS estimate. Nvidia is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Nvidia is holding a Forward P/E ratio of 37.55. This expresses a premium compared to the average Forward P/E of 23.39 of its industry.

It is also worth noting that NVDA currently has a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Semiconductor – General was holding an average PEG ratio of 2.51 at yesterday’s closing price.

The Semiconductor – General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 25% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

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