Nvidia (NVDA) closed at $541.22 in the latest trading session, marking a -0.19% move from the prior day. This change lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.02%.

NVDA will be looking to display strength as it nears its next earnings release. On that day, NVDA is projected to report earnings of $2.80 per share, which would represent year-over-year growth of 48.15%. Meanwhile, our latest consensus estimate is calling for revenue of $4.83 billion, up 55.41% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for NVDA. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.96% lower. NVDA currently has a Zacks Rank of #4 (Sell).

Investors should also note NVDA's current valuation metrics, including its Forward P/E ratio of 45.55. This valuation marks a premium compared to its industry's average Forward P/E of 23.94.

We can also see that NVDA currently has a PEG ratio of 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.63 at yesterday's closing price.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 128, which puts it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NVDA in the coming trading sessions, be sure to utilize Zacks.com.

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