This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. and Morningstar, Inc.Ĭopyright 2022 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606Īt the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Forbes Media, LLC Investor's Business Daily, Inc. Each of the company logos represented herein are trademarks of Microsoft Corporation Dow Jones & Company Nasdaq, Inc. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. #WHAT IS NVDA SPLIT HOW TO#Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.ĭownload FREE: How to Profit from Trillions on Spending for Infrastructure > Zacks has released a Special Report to help you do just that, and today it’s free. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Infrastructure Stock Boom to Sweep AmericaĪ massive push to rebuild the crumbling U.S. The long-term earnings growth rate for Silicon Motion Technology Corporation, Lam Research and LG Display is currently pegged at 8%, 32.8% and 32.56%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here. #WHAT IS NVDA SPLIT FREE#( LPL Quick Quote LPL - Free Report), all sporting a Zacks Rank #1 (Strong Buy), at present. Other top-ranked stocks in the broader technology sector include Silicon Motion Technology Corporation ( SIMO Quick Quote SIMO - Free Report), Lam Research Corporation ( LRCX Quick Quote LRCX - Free Report) and LG Display Co., Ltd. NVIDIA currently carries a Zacks Rank #2 (Buy). However, we beg to differ due to its consistent financial performance and strong growth opportunities in various untapped markets like automotive, healthcare and manufacturing over the long term. Therefore, many would argue that the stock is a risky bet. Nonetheless, NVIDIA trades at a massive premium to the semiconductor industry’s forward P/E multiple of 23.5X. NVIDIA's stock trades at a one-year forward P/E of 42.3X compared with its five-year average of 38.5X. The company is currently authorized to repurchase up to $7.24 billion in shares through December 2022. Moreover, NVIDIA is evaluating the timing of resuming share repurchases. In fiscal 2021, NVIDIA paid out dividends of $395 million. Notably, the company returned approximately $6 billion to shareholders through dividend payments and share buybacks in the last five fiscals. The higher cash flow generating ability lends NVIDIA the flexibility to invest in long-term growth prospects and return money to its shareholders. The company’s accelerated revenue growth along with improving operating efficiency is bringing in higher cash flows. NVIDIA boasts a sturdy cash-flow generating ability. Since it has net cash available on its balance sheet, the existing cash can be used for pursuing strategic acquisitions, investment in growth initiatives and distribution to shareholders. As of Jan 31, 2021, the company had cash and cash equivalents of nearly $11.56 billion, which is significantly higher than its total debt of $5.96 billion. Notably, it is a cash-rich company with a strong balance sheet. NVIDIA’s efforts to boost shareholder value are noteworthy. Notably, the company’s shares have returned a massive 1227.5% in the past five years, strongly outperforming the industry’s five-year growth of 270.3%. This, in turn, should push share prices up again. The motive behind the stock split is to make the company’s stock more affordable to employees and retail investors, thus boosting demand for NVIDIA’s shares. NVIDIA’s shares are expected to start trading on a stock split-adjusted basis from Jul 20. These dividend shares will be distributed after the market closes on Jul 19. If approved, each NVIDIA shareholder will receive three additional shares for every share held as of Jun 21. The process of stockholder approval for the stock dividend will be held virtually on Jun 3, at the company’s 2021 Annual Meeting of Stockholders. NVIDIA ( NVDA Quick Quote NVDA - Free Report) recently declared a four-for-one common stock split in the form of a stock dividend, increasing the number of authorized shares of common stock to 4 billion.
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