Nvidia (NVDA) Stock Drops Despite Market Gains: Important Facts to Note

Nvidia (NVDA) closed the most recent trading day at $140.11, moving -0.02% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.Prior to today's trading, shares of the maker of graphics chips for gaming and artificial intelligence had gained 3.75% over the past month. This has outpaced the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8% in that time.The investment community will be closely monitoring the performance of Nvidia in its forthcoming earnings report. In that report, analysts expect Nvidia to post earnings of $0.84 per share. This would mark year-over-year growth of 61.54%. Our most recent consensus estimate is calling for quarterly revenue of $37.72 billion, up 70.68% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.94 per share and revenue of $129.02 billion, indicating changes of +126.15% and +111.78%, respectively, compared to the previous year.Investors should also note any recent changes to analyst estimates for Nvidia. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.39% rise in the Zacks Consensus EPS estimate. As of now, Nvidia holds a Zacks Rank of #2 (Buy).Looking at valuation, Nvidia is presently trading at a Forward P/E ratio of 47.68. Its industry sports an average Forward P/E of 24.16, so one might conclude that Nvidia is trading at a premium comparatively.Investors should also note that NVDA has a PEG ratio of 2.38 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 3.06.The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 195, placing it within the bottom 23% of over 250 industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks