In the latest trading session, Nvidia (NVDA) closed at $167.27, marking a -0.2% move from the previous day. This change lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.17%.
Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 13.05% over the past month. This has outpaced the Computer and Technology sector's gain of 6.42% and the S&P 500's gain of 4.82% in that time.
NVDA will be looking to display strength as it nears its next earnings release. In that report, analysts expect NVDA to post earnings of $1.15 per share. This would mark a year-over-year decline of 40.72%. Meanwhile, our latest consensus estimate is calling for revenue of $2.55 billion, down 18.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.30 per share and revenue of $10.90 billion. These totals would mark changes of -20.18% and -6.97%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NVDA. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.57% higher within the past month. NVDA is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, NVDA currently has a Forward P/E ratio of 31.63. Its industry sports an average Forward P/E of 16.29, so we one might conclude that NVDA is trading at a premium comparatively.
It is also worth noting that NVDA currently has a PEG ratio of 3.37. 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 industry currently had an average PEG ratio of 1.92 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 218, which puts it in the bottom 15% 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.
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