Nvidia (NVDA, $488.11) gets price target hike from BMO, ahead of earnings release

Nvidia   got a price target hike from BMO Capital. The semiconductor company is set to report its earnings on Wednesday.

 BMO Capital raising its price target on Nvidia shares from $425 to $565 – which represents 14% potential upside from Monday’s close price. BMO maintained outperform rating on the stock.

BMO expects Nvidia to report adjusted earnings of $1.93 a share on a revenue of around $3.65 billion.

"Given the continued run in shares, expectations are high. However, we expect the company to deliver on earnings and expectations," BMO analyst Ambrish Srivastava said. 

According to Tickeron, NVDA's Aroon indicator reaches into Uptrend on August 10, 2020

For traders, this could mean going long on the ticker or exploring call options in the next month. In 363 of 416 cases where NVDA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 87%.

Current price $487.81 is above $374.67 the highest resistance line found by A.I. Throughout the month of 07/16/20 - 08/17/20, the price experienced a +22% Uptrend. During the week of 08/10/20 - 08/17/20, the stock enjoyed a +10% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on July 29, 2020. Traders may consider buying the ticker or exploring call options. In 62 of 73 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 85%.

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where NVDA's MACD histogram became positive, in 41 of 48 cases, the price rose further within the following month. The odds of a continued Uptrend are 85%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in 299 of 350 cases, the price rose further within the following month. The odds of a continued Uptrend are 85%.

Bearish Trend Analysis

The RSI Indicator demonstrated that the ticker has entered the overbought zone. Expect a price pull-back in the near future.

The Stochastic Indicator demonstrated 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 higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 37 of 54 cases where NVDA's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 69%.

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 84%. During the last month, the daily ratio of advancing to declining volumes was 2.49 to 1.

The Tickeron Price Growth Rating for this company is 1 (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 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock better than average.

The Tickeron PE Growth Rating for this company is 11 (best 1 - 100 worst), pointing to outstanding 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 SMR rating for this company is 22 (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 75 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 Valuation Rating of 99 (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 (23.17) is slightly higher than the industry average of (5.13). P/E Ratio (92.15) is within average values for comparable stocks, (88.55). NVDA's Projected Growth (PEG Ratio) (174.12) is very high in comparison to the industry average of (6.12). Dividend Yield (0.26) settles around the average of (0.58) among similar stocks. NVDA's P/S Ratio (15.29) is very high in comparison to the industry average of (4.27).