Javier Ghersi/Second through Getty Photographs
Nvidia’s (NVDA) weighting within the varied indices/ETFs:
Latest analyst goal value modifications:
- 2/16/24: Loop Capital begins NVDA with a goal value of $1,200
- 2/15/24: Piper Sandler $620 to $850
- 2/13/24: UBS from $580 to $850
Nvidia studies Wednesday, 2/21/24 after the closing bell. Per Briefing.com, Avenue consensus expects $4.59 in EPS on $20.4 billion in income. (Shoppers don’t have any direct funding in NVDA shares, however as a substitute are lengthy primarily via QQQ and SMH.)
Walmart (WMT) studies Tuesday morning, February 20, 2024, earlier than the opening bell. When Walmart reported their Q3 ’24 in mid-November ’23, the inventory fell from $170 to $150 within the days following on a gross margin miss, and a few not very well-explained one-time litigation expenses.
Right here is this blog’s earnings preview for Walmart’s This fall ’24 (ends January ’24). Like Alphabet (GOOG) (GOOGL), Amazon (AMZN), and Meta (META), Walmart is moving into promoting, which might assist margins over and above what AI and provide chain automation may obtain by way of margin enlargement.
S&P 500 knowledge:
- The ahead 4-quarter estimate (FFQE) fell $0.20 this week from $242.77 to $242.57
- The P/E ratio fell to twenty.6x from final week’s 20.7x
- The S&P 500 earnings yield rose 2 foundation factors to 4.85% from 4.83% final week
- The This fall ’23 bottom-up S&P 500 EPS estimate has risen for six consecutive weeks, ending final week at $56.93
- The S&P 500’s EPS “upside surprise” for This fall ’23 earnings ended the week at 6.9%, up from +6.8% final week, and 6.4% the week prior
- The income upside shock for This fall ’23 is 1.1% as of this week
Abstract/conclusion: Some say This fall ’23 earnings season unofficially ends this week, and this clip from this weblog’s quarterly EPS and rev progress fee from LSEG’s “earnings scorecard” exhibits that anticipated This fall ’23 EPS progress fee is now 9.6% versus 4.4% anticipated in early January ’24. This fall ’23 earnings wound up a lot stronger than anticipated for This fall ’23, on primarily inline income progress.
Take a look at that spherical journey in “expected” S&P 500 EPS progress beginning on the peak on 9/30/23, after which via Friday, 2/16/24.
This occurs greater than you assume.
Thursday evening, February fifteenth’s earnings studies from Utilized Supplies (AMAT), Commerce Desk (TTD) and Coinbase (COIN) had been very sturdy. It will be nice to see Nvidia pull again 10% this week, however with AMAT’s report it additionally tells me “old semis” like Utilized, Micron (MU) are nonetheless within the good a part of the cycle.
The 2nd half of February calendar returns haven’t been nice. I used to be looking for the bar chart with 100 years of historical past on how/the place the 2nd half of February returns had been displayed (couldn’t discover it) nevertheless it’s one of many worst 2-week durations of the yr.
The S&P 500, the Nasdaq 100 and QQQ might use flush.
None of that is recommendation or a advice. Previous efficiency isn’t any assure of future outcomes. Investing can contain the lack of principal, even with brief time horizons. Readers ought to gauge their very own consolation with portfolio volatility and modify accordingly.
Thanks for studying.
Editor’s Notice: The abstract bullets for this text had been chosen by In search of Alpha editors.
