Q3 Earnings Buzz: Target Stock Falls Nvidia Shares Flat

Following their Q3 results on Wednesday, Target TGT and Nvidia NVDA are two trending stocks that investors are certainly paying attention to.Target’s stock has plunged over 20% since its lackluster Q3 report while Nvidia shares have been surprisingly flat despite topping estimates and posting another quarterly  record for revenue.  Image Source: Zacks Investment Research Target Misses ExpectationsTarget highlighted strengths in traffic and digital channels as a driver to Q3 sales of $25.66 billion which increased 1% year over year but fell short of estimates of $25.91 billion. Furthermore, Target CEO Brian Cornell mentioned unique challenges and cost pressures as a derailment to the company’s bottom line with Q3 earnings of $1.85 per share falling 12% from the comparative quarter and missing the Zacks EPS Consensus of $2.29 by -19%.Inconsistency has had investors on the fence about Target’s stock with the omnichannel retailer previously exceeding Q2 EPS estimates by 19% in August with earnings at $2.57 per share versus expectations of $2.16.Image Source: Zacks Investment Research Nvidia’s Results Beat AgainSeeing continued demand for its artificial intelligence chips, Nvidia’s Q3 sales spiked 93% to a record $35.08 billion compared to $18.12 billion a year ago. This also topped Q3 sales estimates of $33.32 billion by 5%. More impressive, Q3 EPS of $0.81 doubled from $0.40 a share in the prior-year quarter and comfortably beat expectations of $0.75.Nvidia has exceeded earnings expectations for eight straight quarters posting an average EPS surprise of 9.79% in its last four quarterly reports. Further illustrating Nvidia’s dominance is that the chip giant has beaten top line estimates for 23 consecutive quarters with an average sales surprise of 6.7% in its last four quarterly reports.Image Source: Zacks Investment Research Target’s GuidanceProviding EPS guidance for Q4, Target expects adjusted earnings of $1.85-$2.45 per share which is below the current Zacks Consensus of $2.62 or a 12% decline. For its full-year fiscal 2025, Target now projects an adjusted EPS range of $8.30-$8.90, below expectations of $9.54 or 7% growth. Notably, Target expects comparable Q4 sales to be flat and above Zacks estimates of $30.76 billion or a 3% decline. Nvidia's Guidance & Blackwell Update Offering Q4 revenue guidance, Nvidia expects sales to be at $37.5 billion plus or minus 2% with Zacks estimates at $36.84 billion. While Nvidia’s guidance may have underwhelmed investors, the chipmaker stated its much anticipated Blackwell GPUs are already sold out for the next 12 months with shipments beginning this quarter and production set to ramp up next year. The Blackwell GPUs are expected to be the highest-performance AI chips on the market, ahead of its previous H200 series and AMD’s AMD MI300 series. Takeaway Nvidia’s stock currently sports a Zacks Rank #1 (Strong Buy) with Target shares landing a Zacks Rank #3 (Hold). With Nvidia already benefiting from a positive trend of earnings estimate revisions, the chipmaker's robust quarterly growth does suggest more upside as well.Meanwhile, Target shares are trading at their cheapest P/E valuation in over a decade although there could still be better buying opportunities ahead considering the retailers subpar Q3 results.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. 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 Target Corporation (TGT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): 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