Nvidia (NVDA) Outperforms Market Trends: Key Insights

Nvidia (NVDA) wrapped up its latest trading session at a price of $140.41, reflecting a slight increase of +0.61% from its previous close. This performance notably outpaced the S&P 500, which posted a daily gain of just 0.22%. In contrast, the Dow Jones Industrial Average fell by 0.33%, while the tech-heavy Nasdaq composite saw an increase of 0.76%.

Recent Performance Overview

Over the past month, Nvidia's stock has surged by 12.99%, significantly exceeding the Computer and Technology sector's modest gain of 2.29% and the S&P 500's rise of 1.47% during the same timeframe. Investors have been closely observing Nvidia, especially with its upcoming earnings report set for November 20, 2024.

Upcoming Earnings Expectations

In the upcoming earnings announcement, analysts forecast that Nvidia will report earnings per share (EPS) of $0.74, which marks an impressive 85% increase compared to the same quarter last year. Additionally, the Zacks Consensus Estimate is predicting revenue of $32.74 billion, reflecting an 80.69% growth year-over-year.

Annual Growth Projections

For the full year, estimates suggest Nvidia's earnings will reach $2.82 per share, with total revenue projected at $124.66 billion. This indicates remarkable year-on-year increases of +116.92% for earnings and +104.63% for revenue.

Analyst Estimates and Trends

It's also crucial for investors to monitor any changes in analyst estimates for Nvidia, as they provide insights into the evolving business landscape. Positive revisions in estimates typically reflect analysts' optimism regarding the company's future performance.

Zacks Rank Insight

The Zacks Rank system, which rates stocks from #1 (Strong Buy) to #5 (Strong Sell), employs a model that leverages these estimate changes. Historically, stocks ranked #1 by Zacks have achieved an average annual return of +25% since 1988. Currently, Nvidia holds a Zacks Rank of #3 (Hold), indicating a neutral outlook.

Valuation Metrics

Nvidia's shares are trading at a Forward P/E ratio of 49.52, indicating a premium compared to the industry average of 23.93. Furthermore, the company has a PEG ratio of 1.39, which accounts for its projected earnings growth rate. In contrast, the Semiconductor - General industry has a PEG ratio averaging around 3.92.

Industry Context

The Semiconductor - General sector falls under the broader Computer and Technology category, which currently has a Zacks Industry Rank of 180, placing it in the lower 29% among over 250 industries. This ranking gauges the strength of individual industry groups based on the average Zacks Rank of their constituent stocks.

Final Thoughts

Continued monitoring of Nvidia's performance, including its upcoming earnings report and analyst estimates, will be vital for investors navigating this dynamic market.

Nvidia, Earnings, Stock