Nvidia (NVDA) concluded the latest trading session at $430.89, exhibiting a positive movement of +1.46% compared to the preceding trading session. This gain outperformed the S&P 500, which experienced a daily increase of 0.59%. Similarly, the Dow experienced a 0.35% increase, while the Nasdaq, renowned for its technology-centric listings, recorded a significant upturn of 0.83%.

As of today, shares of Nvidia, a top leading manufacturer of graphics chips used in artificial intelligence applications and gaming, have faced a decline of 13.8% over the past month. During this period, the broader Computer and Technology sector saw a dip of 2.71%, while the S&P 500 index itself recorded a 2.84% decrease.

In anticipation of its upcoming earnings report, Nvidia aims to showcase its resilience. Analysts anticipate Nvidia to report earnings of $3.32 per share in this upcoming release, representing a remarkable year-on-year expansion of 472.41%. Our most recent collective prediction also forecasts quarterly revenue of $16.04 billion, marking a substantial increase of 170.46% from the corresponding period last year.

For the full fiscal year, our Zacks Consensus Estimates project earnings of $10.67 per share and revenue of $54.07 billion, indicating remarkable shifts of +219.46% and +81.81%, respectively, in comparison to the prior year.

It is noteworthy that Nvidia has been the subject of recent revisions by analysts. These modifications often reflect the most current short-term business trends.When estimates go up, it usually means analysts believe the company is doing well and will be more profitable.

Research suggests a direct correlation between these estimate revisions and the immediate momentum in stock prices. Investors can potentially benefit from this by utilizing the Zacks Rank, which factors in these estimate changes and delivers a straightforward, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system boasts a well-documented, externally audited track record of superior performance. Since 1988, #1 ranked stocks have returned an average annual gain of +25%. In the last 30 days, our consensus EPS projection has been revised upwards by 2.38%. Currently, Nvidia holds a Zacks Rank #1 (Strong Buy).

In terms of valuation, Nvidia’s Forward P/E ratio stands at 39.8, while its industry peers have an average Forward P/E of 21.26. This shows that Nvidia’s stock might be trading at a premium compared to others in its sector. Investors often use this information to assess whether a stock is overvalued or undervalued relative to its industry.