Nvidia (NVDA) Stock Sinks As Market Gains: Here's Why

In the latest trading session, Nvidia (NVDA) closed at $139.23, marking a -0.12% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.24%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.08%.Shares of the maker of graphics chips for gaming and artificial intelligence have depreciated by 1.02% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37%.Market participants will be closely following the financial results of Nvidia in its upcoming release. The company plans to announce its earnings on February 26, 2025. It is anticipated that the company will report an EPS of $0.84, marking a 61.54% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $37.72 billion, indicating a 70.68% growth compared to the corresponding quarter of the prior year.It's also important for investors to be aware of any recent modifications to analyst estimates for Nvidia. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Nvidia currently has a Zacks Rank of #2 (Buy).In the context of valuation, Nvidia is at present trading with a Forward P/E ratio of 33.13. This denotes a discount relative to the industry's average Forward P/E of 33.62.Also, we should mention that NVDA has a PEG ratio of 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NVDA's industry had an average PEG ratio of 2.19 as of yesterday's close.The Semiconductor - General industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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