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Nvidia (NVDA) Gains As Market Dips: What You Should Know

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Nvidia (NVDA) closed the most recent trading day at $171.24, moving +1.1% from the previous trading session. This change outpaced the S&P 500's 0.58% loss on the day. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, added 0.34%.

Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 21.15% over the past month. This has lagged the Computer and Technology sector's loss of 12.19% and the S&P 500's loss of 10.53% in that time.

Wall Street will be looking for positivity from Nvidia as it approaches its next earnings report date. This is expected to be May 25, 2022. In that report, analysts expect Nvidia to post earnings of $1.30 per share. This would mark year-over-year growth of 41.3%. Meanwhile, our latest consensus estimate is calling for revenue of $8.12 billion, up 43.41% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.56 per share and revenue of $34.64 billion. These totals would mark changes of +25.23% and +28.7%, respectively, from last year.

Any recent changes to analyst estimates for Nvidia should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.62% higher within the past month. Nvidia is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 30.44 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.52.

Investors should also note that NVDA has a PEG ratio of 1.81 right now. 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 1.95 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.

To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.


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