Nvidia Hits Record Highs Ahead Of Q1 Earnings: ETFs In Focus

Graphics chipmaker Nvidia (NVDA - Free Report) has been on an uptrend ahead of its first-quarter fiscal 2021 earnings scheduled on May 21, backed by optimism of Wall Street analysts. The stock hit a new all-time high and is up nearly 20% so far this month, easily outperforming the industry’s average growth of 3.7%. Notably, NVDA shares are up 73% from the March lows.

The solid trend is likely to continue as Nvidia is expected to beat earnings estimate and has solid fundamentals.

Earnings Whispers

Nvidia has a Zacks Rank #2 (Buy) and an Earnings ESP of +0.15%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) 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 first quarter of fiscal 2021. The company’s earnings surprise history is solid. It delivered a positive earnings surprise of 10.60%, on average, over the past four quarters. Additionally, Nvidia is expected to post substantial earnings growth of 92.05% and revenue growth of 34.92% for the to-be-reported quarter.

Further, the stock belongs to a top-ranked Zacks industry (placed at the top 26% of 250+ industries) with an impressive VGM Score of B.

The Zacks Consensus Estimate for average target price is $306.54 with nearly 83% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.

What’s Hot?

A few analysts, including BMO Capital Markets upgraded the stock and raised the price target, stating that the chipmaker will benefit from strong sales of processors for cloud data centers and gaming PCs.

ETFs in Focus

Given the optimism, 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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