Shares of Nvidia (NVDA, Financial) surged by 8.03% in the afternoon session. The stock's movement came as markets rebounded, with the Nasdaq increasing by 1.8% and the S&P 500 rising by 0.8%, following the release of the August inflation report by the Bureau of Labor Statistics.
The report indicated that the Consumer Price Index (CPI), which measures the average price consumers pay for goods and services, increased by 0.2% month over month for August 2024, aligning with market expectations.
Nvidia (NVDA, Financial) is currently priced at $116.78 with a market capitalization of $2.86 trillion. The company has shown strong financial strength, as indicated by its robust Altman Z-Score of 63.68 and a Piotroski F-Score of 8. These metrics suggest a very healthy financial situation.
Despite some warning signs, such as possible financial manipulation indicated by a Beneish M-Score of -0.8, and insider selling activities over the last three months, Nvidia has managed to maintain high profitability. The company's operating margin has expanded to 61.87%, and its net margin sits at an impressive 55.04%.
In terms of growth, Nvidia has exhibited consistent growth. Over the past year, its EBITDA grew by 387.3%, and its revenue growth has been recorded at 195.3%. The company’s forward PE ratio stands at 41.15, indicating that investors are willing to pay a premium for its future earnings.
Valuation-wise, Nvidia is deemed "Fairly Valued" according to the GF Value, standing at $113.84. This valuation aligns closely with Nvidia's current trading price, suggesting limited upside based on this metric. For more detailed insights on Nvidia's GF Value, you can visit the GF Value page.
Overall, while Nvidia (NVDA, Financial) has a few warning signs to watch, its strong financials and consistent growth make it a compelling stock in the semiconductor sector.
