Nvidia (NVDA) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth prospects, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial when selecting stocks, as stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: Nvidia (NVDA) - Nvidia is a leader in visual computing technologies and has shifted its focus to AI-based solutions, supporting high-performance computing, gaming, and virtual reality [11] - Nvidia holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Growth Style Score of B indicating a projected year-over-year earnings growth of 47.5% for the current fiscal year [12] - Recent upward revisions by 15 analysts for fiscal 2026 have increased the Zacks Consensus Estimate to $4.41 per share, with an average earnings surprise of 7.9% [12]