Yahoo Finance Nvidia (NVDA) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Nvidia (NVDA) reached $905.54, with a -1.72% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.1%.
Shares of the maker of graphics chips for gaming and artificial intelligence witnessed a gain of 5.75% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.89% and the S&P 500's loss of 0.35%.
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 is forecasted to report an EPS of $5.49, showcasing a 403.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $24.17 billion, indicating a 236.08% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $23.94 per share and a revenue of $106.05 billion, representing changes of +84.72% and +74.07%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% higher. Nvidia currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Nvidia is presently being traded at a Forward P/E ratio of 38.49. Its industry sports an average Forward P/E of 23.1, so one might conclude that Nvidia is trading at a premium comparatively.
Meanwhile, NVDA's PEG ratio is currently 1.24. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.74 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 215, positioning it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
