Nvidia (NVDA) closed at $124.58 in the latest trading session, up +1.4% from the previous day. The stock’s change was stronger than the S&P 500’s daily gain of 0.2%. At the same time, the Dow gained 0.24% and the tech-heavy Nasdaq gained 0.21%.

Shares of the maker of graphics chips for gaming and artificial intelligence rose 1.46% last month, leading the Computer and Technology sector with a loss of 5.85% and the S&P 500 with a loss of 1.49%.

The upcoming earnings release of Nvidia will be of great interest to investors. The company’s earnings report is expected on August 28, 2024. The company’s earnings per share (EPS) is estimated at $0.63, representing an increase of 133.33% from the same quarter last year. At the same time, our latest consensus estimate is for revenues of $28.24 billion, representing an increase of 109.04% from the corresponding quarter last year.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.69 per share and revenue of $117.82 billion, representing year-over-year changes of +106.92% and +93.39%, respectively.

In addition, investors should keep an eye on recent changes in analyst forecasts for Nvidia. These changes typically reflect the latest short-term business trends, which can change frequently. Therefore, positive estimate changes reflect analyst optimism about the company’s business and profitability.

Research shows that these estimate changes are directly correlated with near-term stock price momentum. To capitalize on this, we have developed the Zacks Rank, an exclusive model that takes these estimate changes into account and provides an operating rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, as validated by outside audits. Stocks ranked #1 have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share remained stable. Currently, Nvidia sports a Zacks Rank of #3 (Hold).

In terms of valuation, Nvidia is currently trading at a P/E ratio of 45.71, which represents a premium to the industry’s average P/E ratio of 23.28.

It is also important to note that NVDA is currently trading at a PEG ratio of 1.22. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. When the market closed yesterday, the semiconductor industry – generally – had an average PEG ratio of 3.6.

The story continues

The Semiconductor – General industry is part of the Computer & Technology sector. Currently, this industry has a Zacks Industry Rank of 215, putting it in the bottom 16% of over 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% of industries outperform the bottom half by a factor of 2 to 1.

Remember to use Zacks.com to track these and other metrics on stock movement during the coming trading sessions.

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NVIDIA Corporation (NVDA): Free Stock Analysis Report

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