Nvidia (NVDA) has been upgraded to a Zacks Rank #1 (Strong Buy) due to a positive trend in earnings estimates. This reflects an improvement in the company’s business outlook, which could lead to a higher stock price. Analysts expect Nvidia to earn $25.10 per share for the fiscal year ending January 2025, representing a 93.7% change from the previous year.

The Zacks rating system focuses on earnings estimate revisions to determine stock ratings. Institutional investors use these estimates to calculate a company’s fair value, leading to stock price movements. Nvidia’s rising earnings estimates and Zacks rating upgrade signify a positive outlook for the company, likely driving its stock price higher.

Zacks’ research shows a strong correlation between earnings estimate revisions and stock movements. The Zacks Rank system, which classifies stocks based on earnings estimates, has a track record of success. Stocks with a Zacks Rank #1 have generated an average annual return of +25% since 1988. Nvidia’s favorable earnings estimate revisions make it a potential market-beating stock in the near term.

Nvidia’s upgrade to a Zacks Rank #1 places it in the top 5% of stocks covered by Zacks for estimate revisions. This suggests the stock could see upward movement in the near future. Director of Research Sheraz Mian has identified a company with significant upside potential, targeting millennial and Gen Z audiences. With nearly $1 billion in revenue last quarter, this stock could outperform previous Zacks’ picks.

From thousands of stocks, 5 Zacks experts have selected their top picks with the potential to double in value. Director of Research Sheraz Mian has identified one stock with explosive upside potential, particularly appealing to millennial and Gen Z audiences. With a recent pullback, now may be a prime opportunity to invest in this high-growth stock.

Read more at Nasdaq: Nvidia (NVDA) Upgraded to Strong Buy: Here’s Why