![]() So based on this quick analysis, we do think it's worth considering NVIDIA for a spot on your watchlist. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. NVIDIA's earnings have taken off in quite an impressive fashion. ![]() Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock. Notably, they have an enviable stake in the company, worth US$13b. But we are reassured by the fact they have invested in the company. Since NVIDIA has a market capitalisation of US$328b, we wouldn't expect insiders to hold a large percentage of shares. Story continues Are NVIDIA Insiders Aligned With All Shareholders? That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens. NVIDIA's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 41%. That makes EPS growth an attractive quality for any company. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide NVIDIA with the means to add long-term value to shareholders.Ĭheck out our latest analysis for NVIDIA How Fast Is NVIDIA Growing? A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.ĭespite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy buying shares in profitable companies like NVIDIA ( NASDAQ:NVDA). Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit.
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