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ETFs to Tap Nvidia Ahead of Q2 Earnings

Graphics chipmaker NVIDIA NVDA is set to release second-quarter fiscal 2018 results on August 10 after market close. As it has been one of the hottest stocks this year, let's take a look to its fundamentals ahead of earnings release.

NVIDIA has been on a stellar run so far this year, hitting multiple highs and locking in gains of about 59.5%, outperforming the industry by a wide margin. This trend is likely to continue given the positive earnings revision trend, which is generally a precursor to an earnings beat, and attractive fundamentals though earnings surprise is difficult to predict at this time.

Inside Our Methodology

Nvidia has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%, which makes surprise prediction difficult. According to our surprise prediction methodology, a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) when combined with a positive Earnings ESP makes us confident in predicting an earnings beat. A Zacks Rank #4 or 5 (Sell rated) company is best avoided going into the earnings announcement, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

The videogame-gear specialist saw positive earnings estimate revision of three cents over the past 90 days for the fiscal second quarter. Additionally, the company's earnings surprise history is robust with a positive earnings surprise of 27.07% on average over the past four quarters. It is expected to post solid earnings growth of 55.97% and revenue growth of 37.05% in Q2 (see: all the Technology ETFs here ).

Further, the stock belongs to a solid Industry Rank in the top 8% with an impressive Growth Style Score of B. However, a Value and Momentum Style Score of F look unfavorable. According to the analysts polled by Zacks, Nvidia has an average target price of $133.25 with more than 57% giving a Strong Buy or a Buy rating ahead of the company's earnings.

What's Hot?

NVIDIA is at the forefront of the artificial intelligence (AI) revolution with its combination of deep learning, software algorithms and powerful GPUs (graphics processing units). With exceptional growth in its AI revolution, it wouldn't be surprising if the graphics chipmaker soon becomes the industry leader. Additionally, the graphic...


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