Trade-Ideas: NVIDIA (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 ( NVDA) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified NVIDIA 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 $122.9 million.
  • NVDA is up 4.2% today from today's close.

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More details on NVDA:

NVIDIA Corporation operates as a visual computing company. The company operates through two segments, GPU and Tegra Processors. The stock currently has a dividend yield of 1.9%. NVDA has a PE ratio of 20.8. Currently there are 9 analysts that rate NVIDIA a buy, 4 analysts rate it a sell, and 12 rate it a hold.

The average volume for NVIDIA has been 6.5 million shares per day over the past 30 days. NVIDIA has a market cap of $9.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.17 and a short float of 11.3% with 6.28 days to cover. Shares are up 10.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NVIDIA as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • NVDA's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 15.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 75.3% when compared to the same quarter one year prior, rising from $77.89 million to $136.52 million.
  • NVIDIA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NVIDIA CORP reported lower earnings of $0.74 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.74).

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