Nvidia (NVDA, $208.18) gets price target hikes, and a valuation caution
Some analysts raised their price targets on Nvidia. One of them had some valuation concerns, though.
Analysts at UBS increased their price target on the semiconductor company’s shares to $240 from $195, citing the company's 2020 product cycle and its multiple. The analysts are sanguine on Nvidia Ray Tracing graphics chip.
Deutsche Bank analyst Ross Seymore has a positive outlook on the company. However, he is still cautious about valuation. Seymore boosted his price target to $190 from $160, which is still below the company's nearly $208 closing price Friday. The analyst views tailwinds in NVDA's ability to address a wide range of rapidly growing sectors (artificial intelligence, data center, gaming, advanced driver assistance systems/audio-visual, etc.), and he expects optimism on these aspects to remain high heading into fiscal 2021. While Seymore expects that a solid guide may result in incremental upside to estimates, he also feels that much of the positive is already reflected in the shares. Deutsche Bank has a hold rating on Nvidia shares.
Aroon Indicator for NVDA shows an upward move is likely
NVDA's Aroon Indicator triggered a bullish signal on October 11, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 382 similar instances where the Aroon Indicator showed a similar pattern. In of the 382 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 17, 2024. You may want to consider a long position or call options on NVDA as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NVDA just turned positive on September 13, 2024. Looking at past instances where NVDA's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
NVDA moved above its 50-day moving average on September 23, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NVDA crossed bullishly above the 50-day moving average on September 24, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 370 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NVDA broke above its upper Bollinger Band on October 08, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 77%.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (51.282) is very high in comparison to the industry average of (7.455). P/E Ratio (56.934) is within average values for comparable stocks, (58.452). Projected Growth (PEG Ratio) (1.306) is also within normal values, averaging (2.825). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (31.447) is also within normal values, averaging (43.049).
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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