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Nvidia (NVDA) Outpaces Stock Market Gains: What You Should Know

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Nvidia (NVDA) closed the most recent trading day at $231.66, moving +1.94% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.48%.

Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 2.92% over the past month. This has outpaced the Computer and Technology sector's loss of 0.56% and lagged the S&P 500's gain of 3.46% in that time.

Wall Street will be looking for positivity from NVDA as it approaches its next earnings report date. This is expected to be November 17, 2021. On that day, NVDA is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 52.05%. Our most recent consensus estimate is calling for quarterly revenue of $6.83 billion, up 44.46% from the year-ago period.

NVDA's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $25.84 billion. These results would represent year-over-year changes of +65.6% and +54.96%, respectively.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. NVDA is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, NVDA is holding a Forward P/E ratio of 54.94. This represents a premium compared to its industry's average Forward P/E of 19.22.

We can also see that NVDA currently has a PEG ratio of 2.81. 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. NVDA's industry had an average PEG ratio of 2.75 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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