Nvidia (NVDA) Surpasses Market Returns: Some Facts Worth Knowing

In the latest trading session, Nvidia (NVDA) closed at $182.16, marking a +1.04% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.89%. The maker of graphics chips for gaming and artificial intelligence's stock has climbed by 1.87% in the past month, exceeding the Computer and Technology sector's loss of 0.5% and the S&P 500's gain of 0.16%.The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company's earnings per share (EPS) are projected to be $1.23, reflecting a 51.85% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $54.55 billion, indicating a 55.49% growth compared to the corresponding quarter of the prior year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.45 per share and a revenue of $204.8 billion, signifying shifts of +48.83% and +56.94%, respectively, from the last year. Any recent changes to analyst estimates for Nvidia should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% increase. Right now, Nvidia possesses a Zacks Rank of #2 (Buy). Looking at its valuation, Nvidia is holding a Forward P/E ratio of 40.48. This represents a discount compared to its industry average Forward P/E of 44.94. We can additionally observe that NVDA currently boasts a PEG ratio of 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - General stocks are, on average, holding a PEG ratio of 5.48 based on yesterday's closing prices. The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 34% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>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