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Why the high growth investor may take a look at NVIDIA CORP (NASDAQ:NVDA).

By Mill Chart

Last update: Dec 26, 2024

Our stock screener has spotted NVIDIA CORP (NASDAQ:NVDA) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:NVDA.


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Deciphering the Technical Picture of NASDAQ:NVDA

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, NVDA scores 9 out of 10 in our technical rating. Both in the recent history as in the last year, NVDA has proven to be a steady performer, scoring decent points in every aspect analyzed.

  • The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
  • Looking at the yearly performance, NVDA did better than 97% of all other stocks. We also observe that the gains produced by NVDA over the past year are nicely spread over this period.
  • NVDA is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 93% of 108 stocks in the same industry.
  • NVDA is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so NVDA is lagging the market slightly.
  • In the last month NVDA has a been trading in the 126.86 - 146.54 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Why is NASDAQ:NVDA a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:NVDA is 7:

NVDA has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 137.17, a Stop Loss order could be placed below this zone.

What matters for high growth investors.

  • NVIDIA CORP has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 101.0% increase. This indicates improving financial performance and the company's effective management of its operations.
  • NVIDIA CORP has experienced 93.61% q2q revenue growth, indicating a significant sales increase.
  • The EPS of NVIDIA CORP has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
  • NVIDIA CORP has demonstrated strong 1-year revenue growth of 152.0%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
  • Analysts' average next Quarter EPS Estimate for NVIDIA CORP has witnessed a 9.91% change in the last 3 months, underscoring the dynamic nature of market sentiment towards the company's EPS prospects.
  • In the most recent financial report, NVIDIA CORP reported a 101.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
  • With a favorable trend in its operating margin over the past year, NVIDIA CORP demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
  • With positive growth in its free cash flow (FCF) over the past year, NVIDIA CORP showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
  • NVIDIA CORP demonstrates a strong Return on Equity(ROE) of 95.71%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. NVIDIA CORP shows promising potential for continued success.
  • Maintaining a Debt-to-Equity ratio of 0.13, NVIDIA CORP demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
  • With institutional shareholders at 66.85%, NVIDIA CORP demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
  • NVIDIA CORP has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
  • NVIDIA CORP has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 97.0 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. NVIDIA CORP is well-positioned for potential price growth opportunities.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

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.

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