Few stocks climbed as high, for as long as NVIDIA (NVDA). In fact between 2014 and 2018 it rallied by over 1500%.
That profit party came to a crashing halt in late 2018. Not because of the Q4 correction, but because of a nasty earnings miss that had investors recalibrating their growth trajectory.
Let’s dig into the stock a bit deeper from a POWR Ratings perspective to see if it has what it takes to move higher in the weeks and months ahead.
Buy & Hold Grade = D
Shares are down 33% from a year ago. That is a hefty decline that points to fundamental weakness that may not correct any time soon. Thus this D rating applies.
Trade Grade = F
The near term results are even a notch worse because we have to remember how much other stocks have rallied this year. So by comparison its short term momentum is rolling in the wrong direction.
Industry Rank = B
Here we have a little glimmer of hope because the overall group, Semiconductor & Wireless Chip, is the #23 rated industry out of 123. In fact, yesterday I covered industry peer QCOM that was scoring well on all these factors. So its not industry conditions harming NVDA. Unfortunately it is their own operational stumbles creating this downdraft.
Peer Grade = D
Like I shared in the Industry Rank note above, the group is in good shape. NVDA just happens to be a lowly #69 rank out of 90 stocks in the industry. So seek better opportunities in the Semiconductor & Wireless Chip industry.
POWR Rating = D (Sell)
Given all the negatives shared above it is not a shocker that NVDA did not score well on the final POWR Rating. Perhaps it can turn things around at the 5/15 earnings report and the get the momentum swinging back into the right direction. However, until the earnings outlook turns positive, I would highly recommend staying away from shares as the trend is not your friend here.
StockNews.com is the home of the POWR Ratings system. Here are some quick links to get you to the most popular POWR Ratings features:
Full List of “A” Rated Strong Buy Stocks
NVIDIA Corporation NASDAQ: NVDA shares were trading at $285.14 per share on Thursday morning, down $2.39 (-0.83%). Year-to-date, has gained 14.60%, versus a % rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of StockNews.com.
