Over the last 30 days, the Zacks Consensus Estimate has changed +7.7%.For the current fiscal year, the consensus earnings estimate of $3.50 points to a change of -21.2% from the prior year.
This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.Nvidia is expected to post earnings of $0.74 per share for the current quarter, representing a year-over-year change of -36.8%. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. And if earnings estimates go up for a company, the fair value for its stock goes up. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. The key question now is: What could be the stock's future direction?While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. During this period, the Zacks Semiconductor - General industry, which Nvidia falls in, has lost 7.8%. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this maker of graphics chips for gaming and artificial intelligence have returned -8.3%, compared to the Zacks S&P 500 composite's -6.2% change. Nvidia (NVDA) has recently been on 's list of the most searched stocks.
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