Wednesday, November 20, 2024
Major market indexes closed mostly unchanged today amidst mixed earnings results from well-known retailers. Target Corporation (TGT) reported disappointing figures, while TJX Companies (TJX) beat expectations. Throughout the day, most indexes remained in the red, with the Nasdaq managing to hold a slight gain by the end of trading.
The Dow Jones Industrial Average increased by +139 points, or +0.32%. In contrast, the S&P 500 was nearly flat, finishing +0.008%. The Russell 2000, which tracks small-cap stocks, gained +0.045%. The Nasdaq dipped slightly, down -21 points or -0.11%. Current bond yields are modest, resting at +4.412% for the 10-year Treasury and +4.319% for the 2-year.
NVIDIA Continues to Impress with Earnings
NVIDIA (NVDA) delivered significant results this afternoon, marking its eighth consecutive earnings beat. The company reported earnings of 81 cents per share, surpassing expectations of 75 cents, and showing a remarkable year-over-year growth of +103%. Revenues for the quarter reached $35.1 billion, exceeding the forecast of $33.2 billion.
Breaking down the numbers further, NVIDIA’s Data Center revenue soared by +94% compared to the previous year and increased +17% quarter-over-quarter, totaling $30.8 billion. The company also guided for a Non-GAAP Gross Margin of +73.5%. For the next quarter, projected revenue is set at $37.5 billion, showcasing strong performance.
Despite these impressive results, NVDA shares fell by around -2% in late trading. This drop is not unusual given the stock’s remarkable rise of +53% over the last six months and a staggering +200% increase year to date. Over the past five years, the stock has gained an astonishing +2600%, maintaining a Zacks Rank of #1 (Strong Buy).
For details, check the updated Zacks Earnings Calendar here.
Palo Alto Networks and Snowflake Surpass Earnings Forecasts
In the realm of cybersecurity, Zacks Rank #2 (Buy)-rated Palo Alto Networks (PANW) reported a strong fiscal Q1, with earnings of $1.56 per share, outpacing the Zacks consensus of $1.48 and last year’s $1.38. Total revenues met expectations at $2.1 billion, which may explain the stock’s decline of -5% following the announcement.
Palo Alto also increased its earnings guidance for the full year to $6.39 per share, bolstered by a notable +40% growth in Annual Recurring Revenue (ARR) from its Next Generation Security products. Additionally, the company announced a 2-for-1 stock split.
Snowflake (SNOW), based in Montana, beat Q3 expectations significantly, leading to a noteworthy rise of +18% in after-hours trading. The company reported earnings of 22 cents per share, exceeding the Zacks consensus by 7 cents. With revenues of $900.3 million, up +29% from a year prior, Snowflake also announced a Net Revenue Retention Rate of +127%.
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Zacks’ Experts Identify Stock with Best Potential
Our team at Zacks has recently analyzed numerous stocks to find the five that have the highest chance of doubling in value in the near future. Among these, Director of Research Sheraz Mian highlights one firm that is poised for significant gains.
This leading financial firm boasts over 50 million customers and offers a wide range of innovative solutions. Although not all of Zacks’ top picks guarantee success, this one has the potential to outperform previous Zacks recommendations like Nano-X Imaging, which surged +129.6% in just over nine months.
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Target Corporation (TGT): Free Stock Analysis Report
The TJX Companies, Inc. (TJX): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
Snowflake Inc. (SNOW): 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.
