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Nvidia (NVDA) Rises Higher Than Market: Key Facts

Nvidia (NVDA) closed the most recent trading day at $876.90, moving +1.96% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 0.12%.

Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 2.77% over the past month, lagging the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9% in that time.

The upcoming earnings release of Nvidia will be of great interest to investors. The company's earnings per share (EPS) are projected to be $5.48, reflecting a 402.75% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $24.17 billion, indicating a 236.08% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $23.84 per share and revenue of $105.87 billion, indicating changes of +83.95% and +73.79%, respectively, compared to the previous year.

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Investors might also notice recent changes to analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.72% upward. Nvidia is holding a Zacks Rank of #1 (Strong Buy) right now.

With respect to valuation, Nvidia is currently being traded at a Forward P/E ratio of 36.07. Its industry sports an average Forward P/E of 24.84, so one might conclude that Nvidia is trading at a premium comparatively.

We can also see that NVDA currently has a PEG ratio of 1.17. 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. NVDA's industry had an average PEG ratio of 2.11 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 172, finds itself in the bottom 32% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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NVIDIA Corporation (NVDA) : Free Stock Analysis Report

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