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

Nvidia (NVDA) closed the most recent trading day at $151.30, moving +1.11% from the previous trading session. This change outpaced the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had lost 20.93% over the past month. This has lagged the Computer and Technology sector's loss of 6.98% and the S&P 500's loss of 6.59% in that time.

Nvidia will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nvidia to post earnings of $1.27 per share. This would mark year-over-year growth of 22.12%. Our most recent consensus estimate is calling for quarterly revenue of $8.12 billion, up 24.83% from the year-ago period.

NVDA's full-year Zacks Consensus Estimates are calling for earnings of $5.42 per share and revenue of $33.94 billion. These results would represent year-over-year changes of +22.07% and +26.09%, respectively.

It is also important to note the recent changes to analyst estimates for Nvidia. 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. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. Nvidia is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 27.59. This valuation marks a premium compared to its industry's average Forward P/E of 8.87.

Meanwhile, NVDA's PEG ratio is currently 1.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% 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.

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

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