Sign InNVIDIA Corporation (NVDA) Expected to Rebound with Upcoming Earnings Announcement
Summary
As of October 19, 2023, NVIDIA Corporation (NVDA) has a stock price of $421.01 with a slight decrease, and despite recent downtrend and mixed news sentiment, analysts recommend as a Buy with an expected rebound towards the resistance level of $439.38 in the upcoming week, supported by positive momentum indicators and expectations from the upcoming earnings announcement on November 15, 2023.
General Information
NVIDIA Corporation (NVDA) is a multinational technology company traded on the NASDAQ exchange. As of its last close on October 19, 2023, the stock was priced at $421.01 with a day change of -0.23%. The firm carries a massive market capitalization of $1.04 trillion.
Stock Performance Analysis
The stock hit a high of $432.97 and a low of $418.84 on October 19, 2023. However, on a wider range, NVDA has an annual high of $502.66 and a low of $118.87. The 50-day moving average at $448.52 indicates the recent trend has been downward, which is closer to the company's all-time high. Yet, the 200-day moving average at $340.40 suggests a long-term upward trend from lower valuations.
The trading volume of NVDA was 48.59 million shares, which is slightly less than the average volume of 49.78 million shares. In terms of volatility, the Average True Range (ATR) of 3.81 signifies moderately high volatility.
Technical Indicators
The stock closed marginally below the support of $416.1 but the resistance level is quite far at $439.38. The RSI14 is 45, suggesting the stock is neither overbought nor oversold.
The Moving Average Convergence Divergence (MACD) stands at 4.63 for the last three months. This indicates an upward momentum.
PE ratio is high at 218.14 which may raise concerns about overvaluation. The EPS stands at 1.93.
Based on DCF analysis, the stock is slightly undervalued with a value of $422.36 compared to its last closing price of $421.01.
Analysts' Opinion and News Sentiment
Analysts show a strong inclination towards a "Buy" rating with 35 recommendations for "Buy", 3 for "Hold", and 1 for "Sell". The target consensus is $358.19 with a high target of $800 and a low target of $133. However, media news indicates a mixed sentiment. On one hand, there is optimism surrounding Nvidia's chips' demand due to AI applications. There is also a prediction about the stock rising to $650. On the other hand, there was news about the stock slipping which might have worried some investors.
Upcoming Events
The next earnings announcement is on November 15, 2023, which could significantly influence the stock's performance.
Predictions
Based on the technical indicators, news sentiment, and analyst recommendations, NVDA stock is expected to rebound from its current level to reach near the resistance at $439.38 in the upcoming week with potential fluctuations due to its relatively high volatility.
Evaluation
In concluding, despite slight recent downtrend and some pessimistic news, NVDA's upward momentum indicated by MACD, positive analyst sentiment, and expectations with its upcoming earnings announcement makes it a "Buy" prospect. The high PE indicates it's a growth stock and suits investors who have a high risk tolerance level. The stock's performance should be monitored closely, especially around the earnings announcement.
