Sign InNVIDIA Corporation Sees Potential Upside Ahead with Upcoming Earnings Announcement
Summary
In an analysis conducted on August 18, 2023, NVIDIA Corporation (NVDA) is rated a Buy due to its solid fundamentals, positive analyst sentiment, and the anticipation of its upcoming earnings announcement, suggesting potential for significant future growth despite a temporary setback in the stock price.
Company Overview
NVIDIA Corporation (NASDAQ: NVDA) is a leading global technology firm renowned for its advanced computing technologies. As of closing on August 18, 2023, the most recent trade of the company's stocks was at $432.99, down by 0.10% from the previous session.
Technical Analysis
NVDA's 14-day Relative Strength Index (RSI) is at 36, which does not indicate an overbought or oversold condition. The Moving Average Convergence Divergence (MACD), a momentum oscillator, shows a negative three-month trend, potentially pointing to an ongoing bearish phase.
The stock has been trading near its 50-day Moving Average of $433.61, slightly below the current stock price. However, it is significantly above its 200-day Moving Average of $277.07, suggesting bullish market sentiment in the long run.
NVDA's stocks are currently supported at $401.11, with resistance at $439.4. This means the stock price is closer to the resistance level, possibly indicating an upward trend, provided it breaks the resistance level.
The Average True Range (ATR), a measure of market volatility, is valued at $3.81, indicating that the company's share price has fluctuated appreciably.
Fundamental Analysis
NVIDIA's earnings per share (EPS) is moderately pegged at $1.91, while it sports a remarkably high price-earnings (PE) ratio of 226.7, indicating that investors are willing to pay a high price per dollar of earnings due to expected future growth.
With a market cap of $1.07 trillion and 2.47 billion outstanding shares, NVIDIA portrays considerable market presence and stability.
The current discounted cash flow (DCF) stands at $434.34, slightly above the current market price, possibly suggesting the NVDA stock as undervalued.
The majority of analysts give the NVDA stock a "Buy" rating, indicating positive market sentiment towards the company.
Upcoming Events and Predictions
NVIDIA is slated to announce its earnings on August 23, 2023. Given its high PE ratio, the expectations from the earnings announcement are likely to be significant.
Skilled analysts have predicted a high target of $800 and a low target of $133 for the NVDA stock, with a consensus target at $294.2. This suggests a downside risk from the current market price on average but indicates a significant potential upside at the high-end target.
Based on the provided data and news, NVIDIA shares should improve on August 21, 2023. Over the coming week, it should further rise given the anticipation of the earnings announcement and overall bullish sentiments.
Final Evaluation
Given the company's solid fundamentals, positive analyst sentiment, and the upcoming earnings announcement, NVDA is rated a "Buy". However, investors should keep an eye on the earnings announcement and market dynamics. It's mentioned that the current drop might be a temporary setback (Published 2023-08-18 15:45:42), that might open a gateway for more significant future potentials. Buyers are encouraged to evaluate the company's success in achieving high expectations associated with its earnings and other market/investment dynamics before making any decision.
