Building a portfolio from scratch can be intimidating for beginner investors, but focusing on stocks projected to outperform the market in the next year is a solid strategy. One such stock to consider adding to your portfolio is Nvidia (NVDA).
Nvidia is a global leader in visual computing technologies and has shifted its focus from PC graphics to AI-based solutions that support HPC, gaming, and VR platforms. The company was added to the Zacks Focus List in May 2019 at $39.13 per share and has seen significant growth in share price since then. Analysts have revised their earnings estimates upwards for NVDA, with a projected 83.6% growth in earnings for the current fiscal year.
Investing in companies with a positive outlook like NVDA can be profitable, as stock prices often respond to earnings estimate revisions. By investing in a Focus List stock like NVDA, you could benefit from potential price momentum driven by increased earnings estimates. If you’re looking for the latest stock recommendations from Zacks Investment Research, you can download the 7 Best Stocks for the Next 30 Days report for free.
