Nvidia: Stock Performance and Upcoming Earnings Report Under the Spotlight
Nvidia (NVDA) closed the latest trading session at $140.41, marking a +0.61% increase from the previous day’s close. This performance surpassed the S&P 500’s daily gain of 0.22%. In contrast, the Dow posted a decline of 0.33%, while the tech-focused Nasdaq rose by 0.76%.
Significant Gains Over the Last Month
In the past month, Nvidia’s shares soared by 12.99%. This robust performance has significantly outpaced the Computer and Technology sector’s gain of 2.29% and the S&P 500’s increase of 1.47% during the same period.
Upcoming Earnings Report and Expectations
Investors will be keenly watching Nvidia’s performance in its upcoming earnings report set for November 20, 2024. Analysts expect the company to report an earnings per share (EPS) of $0.74, which represents an impressive 85% surge compared to the same quarter last year. Additionally, the Zacks Consensus Estimate anticipates revenue to hit $32.74 billion, up 80.69% from a year ago.
Annual Projections Look Strong
For the full year, the Zacks Consensus Estimates predict earnings of $2.82 per share and revenue reaching $124.66 billion, indicating significant year-over-year increases of +116.92% and +104.63%, respectively.
Analyst Sentiment and Estimate Revisions
Changes in analyst estimates are crucial for investors to watch, as they reflect evolving business trends. Positive revisions signal analyst confidence about Nvidia’s business outlook and profitability. Research has shown a close relationship between these estimate revisions and near-term stock performance. The Zacks Rank system takes these changes into account, providing investors with actionable ratings.
Zacks Rank and Valuation Insights
The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), with #1 stocks historically yielding an average annual return of +25% since 1988. Currently, Nvidia has a Zacks Rank of #3 (Hold) after the EPS estimates remained unchanged over the last month.
Considering its valuation, Nvidia is trading at a Forward P/E ratio of 49.52, considerably higher than the industry average Forward P/E of 23.93.
PEG Ratio and Industry Context
Nvidia’s PEG ratio stands at 1.39, which adjusts for the expected earnings growth rate—contrasted with the Semiconductor – General sector’s average PEG ratio of 3.92. This sector is classified under the Computer and Technology category and carries a Zacks Industry Rank of 180, positioning it in the bottom 29% of over 250 tracked industries.
Understanding Industry Rankings
The Zacks Industry Rank gauges the strength of individual industry groups based on the average Zacks Rank of their constituent stocks. Historically, industries in the top half of this ranking outperform those in the bottom half by a factor of two to one.
For more insights and metrics related to Nvidia and its competitors, visit Zacks.com.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
