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Nvidia (NVDA) Stock Moves -0.66%: What You Should Know

Nvidia (NVDA) closed the most recent trading day at $121.39, moving -0.66% from the previous trading session. This change was narrower than the S&P 500's 1.51% loss on the day. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.

Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 12.32% over the past month, lagging the Computer and Technology sector's loss of 11.76% and the S&P 500's loss of 9.52% in that time.

Nvidia will be looking to display strength as it nears its next earnings release. On that day, Nvidia is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 36.75%. Meanwhile, our latest consensus estimate is calling for revenue of $5.99 billion, down 15.73% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $27.46 billion, which would represent changes of -21.17% and +2.03%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 1.31% higher. Nvidia is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Nvidia is currently trading at a Forward P/E ratio of 34.95. Its industry sports an average Forward P/E of 10.53, so we one might conclude that Nvidia is trading at a premium comparatively.

Also, we should mention that NVDA has a PEG ratio of 2.85. 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. NVDA's industry had an average PEG ratio of 1.72 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 187, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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