Here's Why Nvidia (NVDA) is a Strong Growth Stock
It doesn’t matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company’s financial strength, overall health, and future outlook take precedence, so they’ll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
Nvidia (NVDA)
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, the company’s focus has evolved from PC graphics to artificial intelligence (AI) based solutions that now support high performance computing (HPC), gaming and virtual reality (VR) platforms.
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NVDA boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 123.1% year-over-year for 2025, while Wall Street anticipates its top line to improve by 109.6%.
10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.09 to $2.90 per share. NVDA boasts an average earnings surprise of 9.8%.
Looking at cash flow, Nvidia is expected to report cash flow growth of 303.7% this year; NVDA has generated cash flow growth of 50.2% over the past three to five years.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, NVDA should be on investors’ short lists.
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