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NASDAQ:NVDA—A High-Growth Stock Gearing Up for Its Next Upward Move.

By Mill Chart

Last update: Dec 8, 2023

In this article we will dive into NVIDIA CORP (NASDAQ:NVDA) as a possible candidate for growth investing. Investors should always do their own research, but we noticed NVIDIA CORP showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

How We Gauge Growth for NASDAQ:NVDA

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:NVDA boasts a 10 out of 10:

  • The Earnings Per Share has grown by an impressive 130.50% over the past year.
  • Measured over the past years, NVDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.64% on average per year.
  • The Revenue has grown by 57.07% in the past year. This is a very strong growth!
  • NVDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.66% yearly.
  • Based on estimates for the next years, NVDA will show a very strong growth in Earnings Per Share. The EPS will grow by 54.68% on average per year.
  • The Revenue is expected to grow by 38.12% on average over the next years. This is a very strong growth
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

What does the Health looks like for NASDAQ:NVDA

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:NVDA has earned a 6 out of 10:

  • NVDA has a debt to FCF ratio of 1.10. This is a very positive value and a sign of high solvency as it would only need 1.10 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.10, NVDA is in the better half of the industry, outperforming 74.04% of the companies in the same industry.
  • NVDA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
  • NVDA has a Current Ratio of 3.59. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
  • NVDA's Current ratio of 3.59 is fine compared to the rest of the industry. NVDA outperforms 60.58% of its industry peers.
  • NVDA has a Quick Ratio of 3.06. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
  • NVDA has a better Quick ratio (3.06) than 63.46% of its industry peers.

Understanding NASDAQ:NVDA's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NVDA was assigned a score of 8 for profitability:

  • The Return On Assets of NVDA (34.88%) is better than 100.00% of its industry peers.
  • NVDA's Return On Equity of 56.78% is amongst the best of the industry. NVDA outperforms 96.15% of its industry peers.
  • With an excellent Return On Invested Capital value of 36.04%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for NVDA is above the industry average of 12.23%.
  • The 3 year average ROIC (16.79%) for NVDA is below the current ROIC(36.04%), indicating increased profibility in the last year.
  • NVDA has a Profit Margin of 42.09%. This is amongst the best in the industry. NVDA outperforms 98.08% of its industry peers.
  • The Operating Margin of NVDA (45.80%) is better than 98.08% of its industry peers.
  • NVDA's Gross Margin of 69.85% is amongst the best of the industry. NVDA outperforms 91.35% of its industry peers.

How do we evaluate the setup for NASDAQ:NVDA?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:NVDA currently has a 7 as setup rating:

NVDA has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 441.12, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of NVDA contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of NVDA

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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NVIDIA CORP

NASDAQ:NVDA (2/21/2024, 2:03:10 PM)

666.96

-27.56 (-3.97%)

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