Nvidia Hits New Highs Ahead Of Q4 Earnings: ETFs In Focus

Graphics chipmaker Nvidia (NVDA - Free Report) has been on an uptrend ahead of fourth-quarter fiscal 2020 earnings scheduled on Feb 13, backed by optimism of Wall Street analysts. The stock hit new 52-week high and is up more than 13% so far this month, easily outperforming the industry average growth of 6%.

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This is especially true as number of analysts, including Oppenheimer, Deutsche Bank, RBC have raised the price target on the stock, stating that the chipmaker is expected to return to growth after more than a year of quarterly revenue decline. Strong demand in gaming and data center will fuel growth.

The trend is likely to continue, though earnings beat is difficult to predict at this time.

Earnings Whispers

Nvidia has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The videogame-gear specialist saw no earnings estimate revisions over the past 30 days for the fourth quarter of fiscal 2020. The company’s earnings surprise history is solid. It delivered a positive earnings surprise of 8.80%, on average, over the past four quarters. Additionally, Nvidia is expected to post substantial earnings growth of 107.5% and revenue growth of 34.2% for the to-be-reported quarter.

Further, the stock belongs to a top-ranked Zacks industry (placed at the top 32% of 250+ industries) with an unimpressive VGM Score of C.

The Zacks Consensus Estimate for average target price is $243.32 with nearly 71% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.

ETFs in Focus

Given the hike in target price, investors could focus on ETFs having the largest allocation to this graphics chipmaker. Below are five ETFs with the highest allocation to NVDA that could make compelling plays ahead of the earnings report:

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