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 $112.0 million.
  • NVDA is up 6.1% today from today's close.

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More 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 2.1%. NVDA has a PE ratio of 20.7. Currently there are 7 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 6.8 million shares per day over the past 30 days. NVIDIA has a market cap of $9.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.25 and a short float of 11.7% with 9.49 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Tuesday.

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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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. 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:
  • Compared to its closing price of one year ago, NVDA's share price has jumped by 26.74%, exceeding the performance of the broader market during that same time frame. 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.
  • 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 3.53, 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 61.40%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.26% trails the industry average.
  • NVDA, with its decline in revenue, underperformed when compared the industry average of 5.3%. Since the same quarter one year prior, revenues fell by 12.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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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