While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Over the last 30 days, this estimate has changed +2.1%.ġ2-month consensus EPS estimate for NVDA _12MonthEPSChartUrl Over the last 30 days, the Zacks Consensus Estimate has changed +7.7%.įor the current fiscal year, the consensus earnings estimate of $3.50 points to a change of -21.2% from the prior year. Nvidia is expected to post earnings of $0.74 per share for the current quarter, representing a year-over-year change of -36.8%. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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.

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.

That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else.

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