![]() A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. And if earnings estimates go up for a company, the fair value for its stock goes up. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. ![]() Now the key question is: Where could the stock be headed in the near term?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. The Zacks Semiconductor - General industry, to which Nvidia belongs, has lost 17.3% over this period. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this maker of graphics chips for gaming and artificial intelligence have returned -23.9% over the past month versus the Zacks S&P 500 composite's -10.5% change. Nvidia (NVDA) is one of the stocks most watched by visitors lately.
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