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

Last update: Oct 4, 2024

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.

A Closer Look at Growth for NASDAQ:NVDA

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:NVDA was assigned a score of 9 for growth:

NVDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 320.95%, which is quite impressive.
NVDA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.90% yearly.
NVDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 194.69%.
The Revenue has been growing by 39.06% on average over the past years. This is a very strong growth!
NVDA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.09% yearly.
Based on estimates for the next years, NVDA will show a very strong growth in Revenue. The Revenue will grow by 32.85% on average per year.

ChartMill's Evaluation of Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NVDA has received a 8 out of 10:

An Altman-Z score of 71.63 indicates that NVDA is not in any danger for bankruptcy at the moment.
The Altman-Z score of NVDA (71.63) is better than 99.07% of its industry peers.
NVDA has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.18, NVDA belongs to the top of the industry, outperforming 84.26% of the companies in the same industry.
NVDA has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.27 indicates that NVDA has no problem at all paying its short term obligations.
NVDA's Current ratio of 4.27 is fine compared to the rest of the industry. NVDA outperforms 64.81% of its industry peers.
A Quick Ratio of 3.79 indicates that NVDA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.79, NVDA is in the better half of the industry, outperforming 70.37% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:NVDA

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

Looking at the Return On Assets, with a value of 62.20%, NVDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NVDA has a better Return On Equity (91.15%) than 100.00% of its industry peers.
NVDA's Return On Invested Capital of 73.58% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVDA is significantly above the industry average of 10.70%.
The 3 year average ROIC (31.07%) for NVDA is below the current ROIC(73.58%), indicating increased profibility in the last year.
NVDA has a Profit Margin of 55.04%. This is amongst the best in the industry. NVDA outperforms 99.07% of its industry peers.
NVDA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 61.87%, NVDA belongs to the top of the industry, outperforming 99.07% of the companies in the same industry.
NVDA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 75.98%, NVDA belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Gross Margin of NVDA has grown nicely.

How does the Setup look 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 a support zone below the current price at 117.00, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

Disclaimer

This article should in no way be interpreted as advice. 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.