In the case of Nvidia, the consensus sales estimate of $8.12 billion for the current quarter points to a year-over-year change of +24.8%. So, it's important to know a company's potential revenue growth. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Over the last 30 days, this estimate has changed -1.3%.ġ2-month consensus EPS estimate for NVDA _12MonthEPSChartUrl
Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.įor the current fiscal year, the consensus earnings estimate of $5.39 points to a change of +21.4% from the prior year. Nvidia is expected to post earnings of $1.26 per share for the current quarter, representing a year-over-year change of +21.2%. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward.
When earnings estimates for a company go up, the fair value for its stock goes up as well. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else.
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