NVIDIA (NASDAQ:NVDA) has grown its revenues very aggressively in the past 3 years. This article appreciates this fact. What this article attempts to do is put into perspective NVIDIA’s current trading valuation.
I argue that in spite of superb business opportunities ahead, this growth is already accounted for. Currently, it is priced with no margin of safety and the enterprising investor should not be investing in NVIDIA.
In the article that follows, I will review its two main reportable segments followed by an analysis of its financials before delving into its valuation, relative to itself, its peer group and in absolute terms.
NVIDIA started with PC graphics and evolved its focus towards its GPU invention. More recently it has heavily invested in Artificial Intelligence (AI) to support its customers through PC, mobile and cloud architectures.
It has two main reportable segments, GPU and Tegra. These processes are critical in the gaming, professional visualization, datacenters, and automotive markets. Its GPU segment is by far the biggest of the two segments and accounted for 80% of 2018 Q1 consolidated revenue.
Top 10 Financial Stocks To Watch Right Now: Greenlight Capital Re Ltd.(GLRE)
- [By Jim Robertson]
Note that hedge fund mogul David Einhorn has been a director ofthe predecessor company since May 2006. Mr. Einhorn co-founded, and has served as the President of, Greenlight Capital, Inc., since January 1996. Funds managed by Greenlight are some ofthe Companys principal stockholders. Since July 2004, Mr. Einhorn has served as Chairman of the Board of Greenlight Capital Re, Ltd (Nasdaq: GLRE).
Top 10 Financial Stocks To Watch Right Now: The First of Long Island Corporation(FLIC)
- [By Dividends4Life]
The First of Long Island Corporation (FLIC) operates as a bank holding company for The First National Bank of Long Island that provides financial services. Sept. 19, the company increased its quarterly dividend 4% to $0.26 per share. The dividend is payable Oct. 11, 2013 to shareholders of record on October 3, 2013. The yield based on the new payout is 2.7%.
Top 10 Financial Stocks To Watch Right Now: Old National Bancorp Capital Trust I(ONB)
- [By kiplinger]
Old National Bancorp (ONB) is a 181-year-old financial institution with 195 branches, mainly in the Midwest. The stock, which is still down by about one-third from its prerecession high, trades at just 13 times projected 2016 earnings and yields an attractive 3.4%. If interest rates ever rise, the bank should benefit from a widening spread between its cost of funds and the interest rates borrowers pay.It’s a favorite of David Dreman, author of the classic 1980 book Contrarian Investment Strategy. His philosophy: “We believe that the markets are not perfectly efficient.” Some stocks, in other words, are judged by the market to be cheaper than their actual worth.
- [By Ben Levisohn]
The twenty stocks in Worth’s basket are: Ameriprise Financial (AMP) Bank of America, Banner (BANR), Citigroup, Citizens Financial Group (CFG), East West Bancorp (EWBC), First NBC Bank Holding (FNBC), HFF (HF), KeyCorp(KEY), Legacy Texas Financial Group (LTXB), Lincoln National (LNC), Morgan Stanley, Old National Bancorp (ONB), PacWest Bancorp (PACW), PNC Financial Services Group (PNC), Principal Financial Group (PFG), Stifel Financial (SF), SVB Financial Group (SIVB), TCF Financial (TCB), and Wells Fargo.
Top 10 Financial Stocks To Watch Right Now: Potlatch Corporation(PCH)
- [By Lisa Levin]
Here is the list of stocks going ex-dividend on Friday.
Douglas Dynamics Inc (NYSE: PLOW) – $0.2350 dividend, 2.9183 percent yield Tiffany & Co. (NYSE: TIF) – $0.4500 dividend, 2.6758 percent yield PulteGroup, Inc. (NYSE: PHM) – $0.0900 dividend, 1.7078 percent yield Leidos Holdings, Inc. (NYSE: LDOS) – $0.3200 dividend, 3.0851 percent yield Tupperware Brands Corporation (NYSE: TUP) – $0.6800 dividend, 4.1756 percent yield Hudson Pacific Properties Inc (NYSE: HPP) – $0.2000 dividend, 2.36
Top 10 Financial Stocks To Watch Right Now: Aon Corporation(AON)
- [By WWW.THESTREET.COM]
We’re seeing the exact same price pattern playing out in shares of $29 billion risk and insurance consultancy firm Aon plc (AON) . Aon has been a strong performer for all of 2016, up 20% since the calendar flipped to January. But don’t worry if you’ve missed the move – an ascending triangle pattern is signaling a second leg higher here. For Aon, the breakout level to watch is resistance up at $113.
Top 10 Financial Stocks To Watch Right Now: Wells Fargo & Company(WFC)
- [By Ben Levisohn]
Bank stocks have rallied since Donald Trump’s election victory–even Wells Fargo (WFC), which had been hit hard by its cross selling scandal. It’s not hard to see why: Higher rates and better economic growth should be good news for ones that have been in the penalty box. And yes, Wells Fargo is still in the penalty box, say Instinet’s Bill Carcache and Yuman Lui, but that shouldn’t stop the bank from outperforming. They explain why:
Agence France-Presse/Getty Images
Wells Fargo. The company remains in the penalty box near term (e.g., possible legal accruals add to 4Q16 risk), but we view Wells Fargos reputational risk as manageable and expect the rollout of new retail banking sales incentives and the redeployment of its ~$224bn of excess liquidity (held at the Fed as of 3Q16) into higher-yielding loans to serve as positive catalysts later in the year. By our math, each $5bn redeployed into 5-year USTs yielding ~2% would drive incremental EPS of $0.01, with the upside from redeploying into higher-yielding loans even more meaningful.
Shares of Wells Fargo have gained 1.1% to $54.84 at 2:22 p.m. today, while the SPDR S&P Bank ETF (KBE) has risen 0.8% to $43.73.
- [By JPMorgan]
We recommend Wells Fargo into 2016 for several reasons: 1) a safe haven stock in a choppy, uncertain time period; 2) some benefit from acquisitions from GE Capital; 3) continued growth in several other areas – investment banking, credit cards, and payments; and 4) continued sizable capital return.
- [By Jim Cramer]
WFC’s revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company’s bottom line, improving the earnings per share.
- [By Teresa Rivas]
On Thursday,Wells Fargo (WFC) reported first-quarter earnings that topped analysts’ expectations, but the stock still ended down for the day.
Wells Fargo said it earned $1 a share on revenue of $22 billion. Analysts were looking for earnings per share of 97 cents on revenue of $22.3 billion.
Analystshave digetsed the news, and are out withtheir takes on the quarter, and opinions run the gamut.
Evercore ISI’s John Pancari reiterated an Outperform rating and $60 price target on Wells:
A more conservative fee outlook (mainly mortgage) and modest tweak to B/S growth expectations led to a slight downside EPS revision to 2018. That said, expense efforts are now the greater focus given the n/t headwinds – but also the substantial opportunity to pare costs and limit pressure on returns. All eyes on the May 11 investor day.
Sandler O’Neil’sR. ScottSiefers reiterated a Hold rating and $55 price target:
WFCcontinues to address the sales scandal decisively and transparently, but too many uncertainties and issues remain.We are keeping our HOLD rating. We considerWFCs 1Q performance fine, but not its best. On the plus side, credit trends were very good, and a rebound in trading allowed total fees to come in better than we had foreseen (though we suspect that at least a portion of this Qs performance will normalize in coming periods). But the NIM only held firm (whereas we would have hoped to see at least a little expansion), loan growth was pretty weak, and costs came in higher than we had anticipated.
Raymond James’s David Long reiterated an Underweight rating:
The EPS beat was driven by a lower tax rate (management guided to a reversion) and a reserve release from improvement in energy-related credits, while the miss on expenses (deferred comp) outweighed the beat on fees (trading gains). Additionally, March retail banking gr
Top 10 Financial Stocks To Watch Right Now: Digital Realty Trust Inc.(DLR)
- [By Benzinga News Desk]
Last year was brutal for hedge fund investors — but you wouldn’t know it from the fund managers’ paychecks: Link
ECONOMIC DATA The MBA’s index of mortgage application activity for the latest week is schedule for release at 7:00 a.m. ET. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released at 10:30 a.m. ET. ANALYST RATINGS Jefferies Upgraded ConocoPhillips (NYSE: COP) from Hold to Buy JPMorgan Upgraded Clovis Oncology (NASDAQ: CLVS) From Neutral to Overweight Morgan Stanley Upgrades TJX Companies (NYSE: TJX) From Equal-Weight to Overweight Macquarie Downgraded Disney (NYSE: DIS) from Outperform to Neutral Deutsche Bank Downgraded AvalonBay (NYSE: AVB) from Buy to Hold Wells Fargo Downgrades Digital Realty Trust (NYSE: DLR) From Outperform To Market Perform
This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here or email firstname.lastname@example.org.
Top 10 Financial Stocks To Watch Right Now: RenaissanceRe Holdings Ltd.(RNR)
- [By WWW.MONEYSHOW.COM]
RenaissanceRe Holdings (RNR) is a global provider of reinsurance, as well as various types of insurance and related services. The company was founded in 1993 and is headquartered in Bermuda, notes Jack Adamo, editor of Insiders Plus.
Top 10 Financial Stocks To Watch Right Now: Territorial Bancorp Inc.(TBNK)
- [By Lisa Levin]
Territorial Bancorp (NASDAQ: TBNK) shares touched a new 52-week low of $21.31. Territorial Bancorp shares have dropped 9.43% over the past 52 weeks, while the S&P 500 index has gained 16.18% in the same period.
Top 10 Financial Stocks To Watch Right Now: The NASDAQ OMX Group Inc.(NDAQ)
- [By Maureen Farrell]
Twitter will try not to mimic Facebook’s mistakes on IPO day.
NEW YORK (CNNMoney) At the start of last year, Nasdaq (NDAQ) and Morgan Stanley (MS, Fortune 500) were on top of the tech world. Both landed key roles in Facebook’s hotly anticipated initial public offering.
But Facebook’s IPO changed that. Both companies were widely criticized for Facebook’s face plant of a debut. The problems that marred Facebook’s IPO clearly hurt the image of Nasdaq and Morgan Stanley.
- [By Jake Zamansky]
The Securities and Exchange Commission said on Wednesday afternoon it was in contact with the NASDAQ OMX Group (NDAQ) after the brief outage in the system that was at the heart of the three hour shutdown in August, according to a report by Reuters.
- [By Brent Slava]
Power Solutions International Inc (NASDAQ: PSIX) shares plunged as much as 30 percent Tuesday on a report the company would be delisting from Nasdaq Inc (NASDAQ: NDAQ).
- [By Hibah Yousuf]
In a report outlining the growing operational risks at trading exchanges, S&P said the noticeable increase in technical snafus could trigger ratings downgrades for major operators like NYSE Euronext (NYX), Nasdaq OMX (NDAQ) and BATS Global Markets over the next few years.
- [By CNNMoney Staff]
Stocks continued to rally despite the fact that options trading was temporarily halted Monday afternoon at exchanges run by CBOE Holdings (CBOE), Nasdaq OMX (NDAQ), BATS Global Markets and Miami International Holdings due to issues at the Options Price Reporting Authority (OPRA), which provides trading data and price quotes.
- [By Ben Levisohn]