Nvidia (NVDA) Stock: JPMorgan Says Earnings Beat May Not Lift the Price – Here’s Why
TLDR
- Nvidia’s forward P/E ratio has dropped to 24x, close to the S&P 500’s 21x multiple, raising questions about valuation ahead of Wednesday’s earnings.
- Options markets are pricing in a 5.4% move in either direction, implying a $280 billion swing in market cap.
- JPMorgan analyst Harlan Sur says upside to near-term numbers is unlikely to act as a positive catalyst, with the stock averaging a 3-5% decline in the 7-30 days after recent earnings beats.
- Nvidia has declined for seven straight trading days but is still up 11.7% year-to-date.
- Rising Treasury yields and broader market pressure are adding headwinds going into the report.
Nvidia (NVDA) reports second-quarter earnings on Wednesday, and Wall Street is watching closely. The stock has fallen for seven consecutive trading days ahead of the print, though it remains up 11.7% for the year. As of Monday, NVDA was trading down 2.91%.
The forward price-to-earnings ratio for Nvidia currently sits at 24 times. That’s not far from the S&P 500’s 21x multiple, which is a striking comparison for one of the fastest-growing companies in the market.
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