Trade-Ideas: NVIDIA Corporation (NVDA) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified NVIDIA Corporation (NVDA) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified NVIDIA Corporation as such a stock due to the following factors:
- NVDA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $116.1 million.
- NVDA is up 3.5% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NVDA with the Ticky from Trade-Ideas. See the FREE profile for NVDA NOW at Trade-IdeasMore details on NVDA: NVIDIA Corporation, a visual computing company, develops graphics chips for use in personal computers (PC), mobile devices, and supercomputers. The company operates through two segments, GPU and Tegra Processors. The stock currently has a dividend yield of 2%. NVDA has a PE ratio of 16.4. Currently there are 6 analysts that rate NVIDIA Corporation a buy, 2 analysts rate it a sell, and 15 rate it a hold.The average volume for NVIDIA Corporation has been 7.0 million shares per day over the past 30 days. NVIDIA has a market cap of $8.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.45 and a short float of 8% with 5.27 days to cover. Shares are up 20.7% year to date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates NVIDIA Corporation as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.Highlights from the ratings report include:
- NVDA's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.58, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for NVIDIA CORP is rather high; currently it is at 62.39%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, NVDA's net profit margin of 9.86% significantly trails the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, NVIDIA CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- NVDA's share price has surged by 26.83% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NVDA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full NVIDIA Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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