Nvidia Laps The Stock Market

Nvidia, Gpu, Electronics, Pcb, Board, Processor

Image Source: Pixabay
 

In the latest trading session, Nvidia (NVDA - Free Report) closed at $182.74, marking a +1.09% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.98%.

Shares of the maker of graphics chips for gaming and artificial intelligence have appreciated by 10.16% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.34%, and the S&P 500's gain of 1.86%.

The upcoming earnings release of Nvidia will be of great interest to investors. The company's earnings report is expected on August 27, 2025. The company's earnings per share (EPS) are projected to be $1, reflecting a 47.06% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $45.91 billion, showing a 52.83% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.26 per share and a revenue of $198.61 billion, signifying shifts of +42.47% and +52.2%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Nvidia is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Nvidia is holding a Forward P/E ratio of 42.42. This signifies a premium in comparison to the average Forward P/E of 37.06 for its industry.

It is also worth noting that NVDA currently has a PEG ratio of 1.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 3.56.

The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.


More By This Author:

Is Apple Stock A Buy After Appeasing President Trump?
3 Truck Stocks To Keep An Eye On Despite Industry Hiccups
3 Utility Mutual Funds Benefiting From The Sector's 2025 Boom

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with