Nvidia (NVDA) Laps the Stock Market: Here's Why

Nvidia (NVDA) closed the most recent trading day at $188.52, moving +1.1% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%. The maker of graphics chips for gaming and artificial intelligence's stock has dropped by 0.93% in the past month, falling short of the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.Analysts and investors alike will be keeping a close eye on the performance of Nvidia in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.52, marking a 70.79% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $65.59 billion, reflecting a 66.78% rise from the equivalent quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $212.6 billion, representing changes of +55.85% and +62.91%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Currently, Nvidia is carrying a Zacks Rank of #1 (Strong Buy). From a valuation perspective, Nvidia is currently exchanging hands at a Forward P/E ratio of 39.99. This represents a premium compared to its industry average Forward P/E of 35. Investors should also note that NVDA has a PEG ratio of 0.86 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - General industry currently had an average PEG ratio of 2.84 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 17, putting it in the top 7% 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. You can find more information on all of these metrics, and much more, on Zacks.com. Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks