Zacks Report Date: June 12, 2024

NVIDIA Corporation (NVDA) Long Term: 6-12 Months Zacks Recommendation: Outperform
(Since: 05/30/23)
$120.91 (Stock Price as of 06/11/2024)
Prior Recommendation: Neutral
Price Target (6-12 Months): $139.00
Short Term: 1-3 Months Zacks Rank: (1-5) 1-Strong Buy

Zacks Style Scores: VGM:D

Value: F Growth: A Momentum: F

Summary Price, Consensus & Surprise(1)

NVIDIA is benefiting from the strong growth of artificial
intelligence (AI), high-performance and accelerated
computing. The data center end-market business is benefiting
from the growing demand for generative AI and large
language models using graphic processing units (GPUs)
based on NVIDIA Hopper and Ampere architectures. A surge
in hyperscale demand and higher sell-ins to partners across
the Gaming and ProViz end markets following the
normalization of channel inventory are acting as tailwinds.
Collaborations with Mercedes-Benz and Audi are likely to
advance its presence in the autonomous vehicles and other
automotive electronics space. We expect NVIDIA’s revenues
to witness a CAGR of 33.6% through fiscal 2025-2027.
However, its near-term prospects are likely to be hurt by
softening IT spending amid macroeconomic headwinds.

Data Overview Sales and EPS Growth Rates (Y/Y %)(2)

52 Week High-Low $195.95 - $38.62
Sales EPS
20 Day Average Volume (sh) 442,849,632

Market Cap $2,974.4 B

YTD Price Change 144.2%

Beta 1.70

Dividend / Div Yld $0.04 / 0.0%

Industry Semiconductor - General

Zacks Industry Rank Top 30% (74 out of 249)

Last EPS Surprise 11.5% Sales Estimates (millions of $)(2)

Q1 Q2 Q3 Q4 Annual*
Last Sales Surprise 7.0%

EPS F1 Est- 4 week change 11.0% 2026 31,094 E 31,776 E 32,941 E 34,415 E 130,227 E
2025 26,044 A 28,133 E 29,068 E 30,084 E 113,329 E
Expected Report Date 08/28/2024
2024 7,192 A 13,507 A 18,120 A 22,103 A 60,922 A
Earnings ESP 0.0%
EPS Estimates(2)
P/E TTM 67.2 Q1 Q2 Q3 Q4 Annual*

P/E F1 46.2 2026 0.73 E 0.73 E 0.77 E 0.81 E 3.04 E

PEG F1 0.9 2025 0.61 A 0.62 E 0.67 E 0.71 E 2.62 E

2024 0.11 A 0.27 A 0.40 A 0.52 A 1.30 A
P/S TTM 37.3
*Quarterly figures may not add up to annual.

1) The data in the charts and tables, except the estimates, is as of 06/11/2024.
2) The report's text, the analyst-provided estimates, and the price target are as of 06/12/2024.

© 2024 Zacks Investment Research, All Rights Reserved 10 S. Riverside Plaza Suite 1600 · Chicago, IL 60606
 Overview
NVIDIA Corporation is the worldwide leader in visual computing
technologies and the inventor of the graphic processing unit, or GPU.
Over the years, the company’s focus has evolved from PC graphics to
artificial intelligence (AI) based solutions that now support high
performance computing (HPC), gaming and virtual reality (VR) platforms.

NVIDIA’s GPU success can be attributed to its parallel processing

capabilities supported by thousands of computing cores, which are
necessary to run deep learning algorithms. The company’s GPU
platforms are playing a major role in developing multi-billion-dollar end-
markets like robotics and self-driving vehicles.

NVIDIA is a dominant name in the Data Center, professional

visualization and gaming markets where Intel and Advanced Micro
Devices are playing a catch-up role. The company’s partnership with
almost all major cloud service providers (CSPs) and server vendors is a
key catalyst.

NVIDIA’s GPUs are also getting rapid adoption in diverse fields ranging
from radiology to precision agriculture. The company’s GPUs power the
top supercomputer in the world, located at Oak Ridge National
Laboratories in the United States, as well as the top supercomputers in
Europe and Japan.

Santa Clara, CA-based, NVIDIA reported revenues of $60.92 billion in As of 06/12/2024

fiscal 2024, up 126% from $26.97 billion in fiscal 2023.

Beginning first-quarter fiscal 2021, NVIDIA started reporting revenues under two segments – Graphics and Compute & Networking.

Graphics includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for
gaming platforms; Quadro GPUs for enterprise design; GRID software for cloud-based visual and virtual computing; and automotive platforms for
infotainment systems.

Compute & Networking comprises Data Center platforms and systems for AI, HPC, and accelerated computing; DRIVE for autonomous vehicles;
and Jetson for robotics and other embedded platforms. Mellanox revenues included in this segment beginning second-quarter fiscal 2021.

Graphics and Compute & Networking accounted for 22% and 78% of fiscal 2024 revenues, respectively.

As of 06/11/2024

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 Reasons To Buy:
Datacenter presents a solid growth opportunity for the company. As more and more Growth opportunities in
businesses are shifting toward cloud, the need for datacenters is increasing. To cater to this ray-traced gaming, high-
huge demand, datacenter operators like Amazon, Microsoft and Alphabet are expanding their performance computing, AI
operations across the world, which is driving demand for the GPUs. This bodes well for and self-driving cars are
NVIDIA’s uptrend as well. Further, the company intends to focus on new growth boosters for encouraging.
its data center business, such as inference, data science and machine learning techniques to
consolidate its presence in this niche market. Considered most preferred by the datacenter
operators, NVIDIA’s GPUs are likely to help the company grab a larger market space. The
company’s acquisition of Mellanox is a key catalyst in this regard. Additionally, the datacenter end-market business is likely to benefit from
the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. The
strong demand for its chips from large cloud service and consumer internet companies is anticipated to continue aiding the segment’s top-
line growth. Our estimates suggest that the company’s revenues from the Data Center end market should witness a CAGR of 38.3% through
fiscal 2025-2027.

NVIDIA’s GPUs are rapidly benefiting from the proliferation of AI. By applying its GPUs in AI models, the company is expanding its base in
the other untapped markets like automotive, healthcare and manufacturing, which will support its earnings and revenues. The company is
engaged with a number of organizations including the top cloud server companies like Amazon, Baidu and Meta Platforms, which are infusing
AI in various applications. NVIDIA has also partnered with the industry biggies — IBM, Microsoft and SAP in order to bring AI to the
enterprise users’ table. The company has collaborated with the top-ranked OEMs including Dell, HP and Lenovo to deliver powerful
workstations inclusive of Quadro RTX GPUs and its new CUDAX AI accelerated software. Moreover, a steady ramp-up of the new products is
enabling the company to gain a competitive edge over the likes of AMD and Intel, and also widen its market share.

NVIDIA’s foray into the autonomous vehicles and other automotive electronics space is a positive. The company currently is on a firmer
footing in the autonomous vehicle market. It is working with more than 320 automakers, tier-one suppliers, automotive research institutions,
HD mapping companies and start-ups to develop and deploy AI systems for self-driving vehicles. Notably, NVIDIA’s focus on incorporating AI
into the cockpit for infotainment systems is allowing it to grow its autonomous driving revenues. The company expects its automotive TAM to
be $30 billion by 2025, which comprises $25 billion for driving, $3 billion for training/development of deep neural networks and $2 billion for
validation and testing.

NVIDIA is a cash rich company with a strong balance sheet and can be considered as a below-average leveraged company as its total debt
to total capital ratio of 0.16 is significantly lower than the industry average of 0.30. As of Apr 28, 2024, the company had cash, cash
equivalents and marketable securities of nearly $31.44 billion, which is significantly higher than its total long-term debt of $8.46 billion. Since it
has net cash available on its balance sheet, the existing cash can be used for pursuing strategic acquisitions, investing in growth initiatives
and distributing to shareholders.

NVIDIA boasts a sturdy cash-flow generating ability. The company’s accelerated revenue growth along with improving operating efficiency is
bringing in higher cash flows. In fiscal 2024, the company generated operating and free cash flow of $28.09 billion and $11.22 billion,
respectively. The higher cash flow generating ability lends NVIDIA flexibility to invest in long-term growth prospects and return money to its
shareholders. In fiscal 2024, the company returned $9.93 billion to shareholders through $395 million in dividend payouts and $9.53 billion in
share repurchases. In the first quarter of fiscal 2025, the company generated operating and free cash flow of $15.4 billion and $14.94 billion,
respectively. During the quarter, it returned $7.8 billion to shareholders through dividend payouts and share repurchases. At the end of the
first quarter of fiscal 2025, it had a remaining share repurchase authorization of approximately $14.7 billion, which has no expiration time.
Moreover, the company has raised its quarterly cash dividend rate by 150%, beginning from the second quarter of fiscal 2025.

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 Risks
The United States and China’s tit-for-tat trade war is a major threat to the company. This is because the United States is the largest
semiconductor manufacturing country with China being its biggest importer. The trade war between the two countries is likely to further
escalate as the US government imposed a new licensing requirement for NVIDIA’s A100, A100X and forthcoming H100 integrated circuit
sales in China and Russia in October 2023. The government has also banned NVIDIA from exporting DGX or any other systems that
incorporate A100 or H100 integrated circuits. NVIDIA’s A100 and H100 are its highest-performance chips used in data centers for AI, data
analytics and computing applications. Though the company does not sell products to customers in Russia, the new licensing requirements
are going to significantly hurt its data center chip sales in China.

NVIDIA’s near-term prospects might be hurt by softening IT spending. The still-high interest rates and protracted inflationary conditions
have impacted consumer spending. Meanwhile, enterprises are postponing their large IT spending plans due to a weakening global
economy amid ongoing macroeconomic and geopolitical issues. This does not bode well for NVIDIA’s prospects in the near term.

The competition between NVIDIA and AMD has taken a meaningful turn. Previously, NVIDIA and ATI made graphics chips for the PC
market. Later AMD acquired ATI and combined the CPU and parallel graphics chip into a single component. AMD is now making an effort
to strengthen its position in the commodity graphics segment and CPUs for console gaming systems. AMD chips have made an entry into
Sony Corp.'s PS4. Nintendo’s Wii U and Microsoft’s Xbox One will also be going with AMD. NVIDIA also has limited scope for growth in
the apps processor market as it is dominated by Apple, Samsung and Qualcomm. We believe that competitive pressure from two CPU
vendors, Intel and AMD, who are planning to integrate graphics cores into their chips can negatively impact NVIDIA’s revenues in the long
haul.

A substantial portion of the company’s sales is derived from outside the United States. Sales revenues to customers outside the United
States accounted for more than 56% of the total revenues for fiscal 2024. Hence, we believe that any unfavorable currency fluctuation and
an uncertain macroeconomic environment may moderate the company’s growth.

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 Last Earnings Report
NVIDIA Q1 Earnings Top Estimates, Revenues Rise Y/Y FY Quarter Ending 1/31/2024

NVIDIA reported first-quarter fiscal 2025 earnings of $6.12 per share, which beat the Zacks Earnings Reporting Date May 22, 2024
Consensus Estimate by 11.48% and increased 19% sequentially. Notably, NVDA posted
Sales Surprise 7.02%
earnings of $1.09 per share in the year-ago quarter.
EPS Surprise 11.48%
Revenues jumped 262% year over year to $26.04 billion and beat the Zacks Consensus Quarterly EPS 0.61
Estimate by 7.02%. On a sequential basis, revenues increased 18%. Annual EPS (TTM) 1.80

NVIDIA is riding on a strong and innovative portfolio, with the growing adoption of its GPUs. It
benefits from a strong partner base that includes the likes of TSMC, Synopsys, AWS, Alphabet,
Microsoft, Oracle, and Johnson & Johnson MedTech.

NVIDIA also announced a ten-for-one forward stock split of its issued common stock and raised the quarterly cash dividend by 150%.

Segment Details

NVIDIA reports revenues under two segments — Graphics, and Compute & Networking.

Graphics accounted for 13% of fiscal first-quarter revenues. The segment’s top line climbed 23.3% year over year, while decreasing 20%
sequentially to $3.37 billion. The figure lagged the consensus mark by 32.51%.

Compute & Networking represented 87% of fiscal first-quarter revenues. Revenues soared 408.4% year over year and 27% sequentially to
$22.68 billion. The figure beat the Zacks Consensus Estimate by 19.26%

Based on the market platform, Gaming revenues increased 478% year over year but declined 8% sequentially at $2.65 billion beating the Zacks
Consensus estimate by 0.72%.

NVIDIA expanded its collaboration with Alphabet by offering support for Google’s Gemma for ChatRTX, which brings chatbot capabilities to
RTX-powered Windows PCs and workstations.

Revenues from Data Center jumped 427% year over year and 23% sequentially to $22.56 billion. The figure beat the consensus mark by 9.09%.

Data Center compute revenues were $19.4 billion, up 478% year over year and 29% sequentially. Higher shipments of the NVIDIA Hopper GPU
computing platform used for training and inferencing with large language models, recommendation engines, and generative AI applications
benefited top-line growth.

Networking revenues were $3.2 billion, up 242% year over year on strong growth of InfiniBand end-to-end solutions. However, revenues declined
5% sequentially due to the timing of supply.

Strong sequential Data Center growth was driven by all customer types, led by Enterprise and Consumer Internet companies. Large cloud
providers continued to drive strong growth as they deployed and ramped NVIDIA AI infrastructure at scale, representing mid-40% of NVIDIA’s
Data Center revenues.

In the reported quarter, NVDA announced that TSMC and Synopsys would go into production with NVIDIA cuLitho to accelerate computational
lithography. It also expanded collaborations with AWS, Alphabet’s Google Cloud, Microsoft and Oracle to accelerate generative AI innovation.

Professional Visualization revenues increased 45% year over year but declined 8% sequentially to $427 million, lagging the Zacks Consensus
estimate by 13.33%.

Automotive sales in the reported quarter totaled $329 million, up 11% on a year-over-year basis and 17% sequentially. The figure beat the Zacks
Consensus Estimate by 9.78%.

NVIDIA Drive Thor solution was adopted by BYD, XPENG, GAC’s AION Hyper, Nuro and others in the reported quarter. Lucid and IM Motors
are using the NVIDIA DRIVE Orin platform for vehicle models targeting the European market.

OEM and Other revenues moved up 1% year over year but declined 13% sequentially to $78 million. The figure missed the consensus mark by
15.39%.

Expanding Portfolio Aids Prospects

In the fiscal first quarter, NVIDIA launched the Blackwell platform targeted for AI computing at a trillion-parameter scale and the Blackwell-
powered DGX SuperPOD for Generative AI supercomputing.

It announced NVIDIA Quantum and NVIDIA Spectrum X800 series switches for InfiniBand and Ethernet, respectively, optimized for trillion-
parameter GPU computing and AI infrastructure.

Moreover, the company launched NVIDIA AI Enterprise 5.0 with NVIDIA NIM inference microservices to speed enterprise app development.

For the gaming domain, NVIDIA launched AI gaming technologies for NVIDIA ACE and Neural Graphics. Moreover, it unveiled AI performance

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 optimizations and integrations for Windows to deliver maximum performance on NVIDIA GeForce RTX AI PCs and workstations.

For the Professional Visualization domain, it launched NVIDIA RTX 500 and 1000 professional Ada generation laptop GPUs for AI-enhanced
workflows, NVIDIA RTX A400 and A1000 GPUs for desktop workstations and NVIDIA Omniverse Cloud APIs.

Operating Details

NVIDIA’s non-GAAP gross margin increased to 78.9% from 66.8% in the year-ago quarter and 76.7% from the previous quarter, mainly driven
by higher Data Center sales.

Non-GAAP operating expenses increased 43% year over year and 13.2% sequentially to $2.50 billion. The increase was due to higher
compensations and related benefits.

However, as a percentage of total revenues, non-GAAP operating expenses declined to 9.6% from 24.3% in the year-ago quarter and 30.7% in
the previous quarter.

The non-GAAP operating income was $18.06 billion compared with $3.05 billion in the year-ago quarter. Sequentially, the figure jumped 22.4%.

Balance Sheet and Cash Flow

As of Apr 28, 2024, NVDA’s cash, cash equivalents and marketable securities were $31.44 billion, up from $25.98 billion as of Jan 28, 2024.

As of Apr 28, 2024, the total long-term debt was $8.46 billion, unchanged sequentially.

NVIDIA generated $15.4 billion in operating cash flow, up from the previous quarter’s $11.5 billion.

The company ended the fiscal first quarter with a free cash flow of $14.94 billion.

In the fiscal first quarter, it returned $7.8 billion to shareholders through dividend payouts and share repurchases.

Guidance

For the second quarter of fiscal 2025, NVIDIA anticipates revenues of $28 billion (+/-2%), higher than the Zacks Consensus Estimate of $26.24
billion.

The non-GAAP gross margin is projected at 75.5% (+/-50 bps). Non-GAAP operating expenses are estimated at $2.8 billion.

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 Recent News
On Jun 2, NVIDIA announced the general software availability of NVIDIA AI Enterprise-IGX with NVIDIA Holoscan on the NVIDIA IGX platform.

On Jun 2, NVIDIA announced that the world’s leaders in robot development are adopting the NVIDIA Isaac robotics platform for the research,
development and production of the next generation of AI-enabled autonomous machines and robots.

On Jun 2, NVIDIA announced new NVIDIA RTX technology to power AI assistants and digital humans running on new GeForce RTX AI laptops.

On Jun 2, NVIDIA announced the widespread adoption of the NVIDIA Spectrum-X Ethernet networking platform as well as an accelerated
product release schedule.

On May 12, NVIDIA revealed that nine new supercomputers worldwide are using NVIDIA Grace Hopper Superchips to speed scientific research
and discovery.

On May 12, NVIDIA announced that it would accelerate quantum computing efforts at national supercomputing centers around the world with the
open-source NVIDIA CUDA-Q platform. Supercomputing sites in Germany, Japan and Poland will use the platform to power the quantum
processing units (QPUs) inside their NVIDIA-accelerated high-performance computing systems.

On Mar 18, NVIDIA announced several partnerships related to AI, including companies with the likes of SAP, Oracle, Amazon Web Service,
Google and Microsoft.

On Mar 18, NVIDIA unveiled a 6G research platform that empowers researchers with a novel approach to develop the next phase of wireless
technology.

On Mar 18, NVIDIA launched a cloud service that allows researchers and developers to push the boundaries of quantum computing exploration
in key scientific domains, including chemistry, biology and materials science.

On Mar 18, NVIDIA announced Project GR00T, a general-purpose foundation model for humanoid robots designed to further its work driving
breakthroughs in robotics and embodied AI.

On Mar 18, NVIDIA launched dozens of enterprise-grade generative AI microservices that businesses can use to create and deploy custom
applications on their own platforms while retaining full ownership and control of their intellectual property.

On Mar 18, NVIDIA launched more than two dozen new microservices that allow healthcare enterprises worldwide to take advantage of the latest
advances in generative AI from anywhere and on any cloud.

Valuation
NVIDIA shares have jumped 143.9% year to date and skyrocketed 194.4% in the trailing 12 months. Stocks in the Zacks sub-industry jumped
60.5%, while the Zacks Technology sector rose 8% in the year-to-date period. Over the past year, the Zacks sub-industry rallied 52.8% and the
sector grew 21.5%.
The S&P 500 Index has increased 6.9% year to date and 16.4% in the past year.
The stock is currently trading at 4.21X forward 12-month earnings, which compares with 40.94X for the Zacks sub-industry, 24.05X for the Zacks
sector and 20.54X for the S&P 500 Index.
Over the past five years, the stock has traded as high as 10.63X and as low as 2.68X, with a five-year median of 5.07X. Our Outperform
recommendation indicates that the stock will perform better than the market. Our $139 price target reflects 4.84X forward 12-month earnings.
The table below shows summary valuation data for NVDA.

Zacks Equity Research www.zacks.com Page 7 of 10

 Industry Analysis(1)Zacks Industry Rank: Top 30% (74 out of 249) Top Peers(1)
Company (Ticker) Rec Rank
Amtech Systems, Inc. (ASYS) Outperform

Advanced Micro Devices, Inc. (AMD) Neutral

Intel Corporation (INTC) Neutral

Marvell Technology, Inc. (MRVL) Neutral

SUMCO (SUOPY) Neutral

Thk Co., Ltd. (THKLY) Neutral

Texas Instruments Incorporated Neutral

(TXN)
STMicroelectronics N.V. (STM) Underperform

Industry Comparison(1)Industry: Semiconductor - General Industry Peers

NVDA X Industry S&P 500 AMD STM TXN

Zacks Recommendation (Long Term) Outperform - - Neutral Underperform Neutral

Zacks Rank (Short Term) - -

VGM Score - -
Market Cap 2,974.39 B 85.59 B 33.95 B 256.93 B 39.56 B 179.77 B
# of Analysts 15 7 18 15 4 12
Dividend Yield 0.03% 0.62% 1.59% 0.00% 0.47% 2.63%
Value Score - -
Cash/Price 0.01 0.15 0.04 0.02 0.16 0.06
EV/EBITDA 82.94 15.26 14.65 60.84 5.72 20.23
PEG Ratio 0.87 2.67 2.14 1.40 4.11 4.28
Price/Book (P/B) 60.53 1.76 3.34 4.57 2.30 10.59
Price/Cash Flow (P/CF) 97.46 15.13 13.52 37.86 6.85 23.31
P/E (F1) 46.15 29.47 18.26 46.60 20.57 38.49
Price/Sales (P/S) 37.29 2.39 2.71 11.27 2.40 10.70
Earnings Yield 2.22% 3.37% 5.44% 2.15% 4.86% 2.60%
Debt/Equity 0.17 0.22 0.62 0.03 0.17 0.76
Cash Flow ($/share) 1.24 3.67 8.64 4.20 6.39 8.47
Growth Score - -
Hist. EPS Growth (3-5 yrs) 59.67% 11.66% 9.87% 57.29% 45.42% 11.66%
Proj. EPS Growth (F1/F0) 101.54% -9.72% 7.46% 28.68% -52.24% -27.44%
Curr. Cash Flow Growth 303.66% -14.31% 3.70% -25.91% 11.51% -20.68%
Hist. Cash Flow Growth (3-5 yrs) 50.20% 2.24% 6.94% 63.25% 22.02% 3.89%
Current Ratio 3.53 3.03 1.22 2.64 3.34 4.91
Debt/Capital 14.69% 17.77% 39.29% 2.97% 14.32% 43.05%
Net Margin 53.40% 7.70% 11.99% 4.89% 22.30% 35.16%
Return on Equity 110.60% 4.86% 16.63% 5.72% 22.95% 35.28%
Sales/Assets 1.29 0.60 0.54 0.34 0.70 0.52
Proj. Sales Growth (F1/F0) 86.00% -4.95% 3.93% 11.50% -17.00% -10.20%
Momentum Score - -
Daily Price Chg -0.72% -0.41% 0.27% -0.86% -1.17% -0.09%
1 Week Price Chg 10.27% -0.11% 1.59% 0.58% 6.00% 0.31%
4 Week Price Chg 32.35% 1.44% 2.45% 3.79% 4.73% 3.30%
12 Week Price Chg 35.25% -1.23% 3.80% -12.38% 0.32% 18.40%
52 Week Price Chg 194.74% -1.21% 23.03% 27.65% -11.37% 11.29%
20 Day Average Volume 442,849,632 1,489,406 2,019,020 52,868,216 2,941,039 5,440,353
(F1) EPS Est 1 week change -0.33% 0.00% 0.00% -0.22% 0.00% 0.00%
(F1) EPS Est 4 week change 10.98% 0.00% 0.00% -0.22% 0.00% -0.73%
(F1) EPS Est 12 week change 14.37% -0.34% 0.39% -2.19% -30.28% -0.69%
(Q1) EPS Est Mthly Chg 10.24% 0.00% 0.00% -0.61% 0.00% 0.00%

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 Analyst Earnings Model(2)

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 Zacks Stock Rating System
We offer two rating systems that take into account investors' holding horizons: Zacks Rank and Zacks Recommendation. Each provides valuable
insights into the future profitability of the stock and can be used separately or in combination with each other depending on your investment style.

Zacks Recommendation
The Zacks Recommendation aims to predict performance over the next 6 to 12 months. The foundation for the quantitatively determined Zacks
Recommendation is trends in the company's estimate revisions and earnings outlook. The Zacks Recommendation is broken down into 3 Levels;
Outperform, Neutral and Underperform. Unlike many Wall Street firms, we have an excellent balance between the number of Outperform and
Neutral recommendations. Our team of 70 analysts are fully versed in the benefits of earnings estimate revisions and how that is harnessed
through the Zacks quantitative rating system. But we have given our analysts the ability to override the Zacks Recommendation for the 1200
stocks that they follow. The reason for the analyst over-rides is that there are often factors such as valuation, industry conditions and
management effectiveness that a trained investment professional can spot better than a quantitative model.

Zacks Rank
The Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon. The underlying driver for the
quantitatively-determined Zacks Rank is the same as the Zacks Recommendation, and reflects trends in earnings estimate revisions.

Zacks Style Scores

The Zacks Style Score is as a complementary indicator to the Zacks rating system, giving investors a way
to focus on the highest rated stocks that best fit their own stock picking preferences. Value Score

Academic research has proven that stocks with the best Value, Growth and Momentum characteristics Growth Score
outperform the market. The Zacks Style Scores rate stocks on each of these individual styles and assigns
Momentum Score
a rating of A, B, C, D and F. We also produce the VGM Score (V for Value, G for Growth and M for
Momentum), which combines the weighted average of the individual Style Scores into one score. This is
VGM Score
perfectly suited for those who want their stocks to have the best scores across the board.

As an investor, you want to buy stocks with the highest probability of success. That means buying stocks with a Zacks Recommendation of
Outperform, which also has a Style Score of an A or a B.

Disclosures
This report contains independent commentary to be used for informational purposes only. The analysts contributing to this report do
not hold any shares of this stock. The analysts contributing to this report do not serve on the board of the company that issued this
stock. The EPS and revenue forecasts are the Zacks Consensus estimates, unless otherwise indicated in the report’s first-page
footnote. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts personal
views as to the subject securities and issuers. ZIR certifies that no part of the analysts compensation was, is, or will be, directly or indirectly,
related to the specific recommendation or views expressed by the analyst in the report.

Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we
believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Any opinions expressed herein are subject to
change.

ZIR is not an investment advisor and the report should not be construed as advice designed to meet the particular investment needs of any
investor. Prior to making any investment decision, you are advised to consult with your broker, investment advisor, or other appropriate tax or
financial professional to determine the suitability of any investment.This report and others like it are published regularly and not in response to
episodic market activity or events affecting the securities industry.

This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities herein mentioned. ZIR or its officers,
employees or customers may have a position long or short in the securities mentioned and buy or sell the securities from time to time.ZIR is not a
broker-dealer.ZIR may enter into arms-length agreements with broker-dealers to provide this research to their clients.Zacks and its staff are not
involved in investment banking activities for the stock issuer covered in this report.

ZIR uses the following rating system for the securities it covers. Outperform- ZIR expects that the subject company will outperform the broader
U.S. equities markets over the next six to twelve months. Neutral- ZIR expects that the company will perform in line with the broader U.S.
equities markets over the next six to twelve months. Underperform- ZIR expects the company will underperform the broader U.S. equities
markets over the next six to twelve months.

No part of this report can be reprinted, republished or transmitted electronically without the prior written authorization of ZIR.

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