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NXP Semiconductors (NXPI) Gains But Lags Market: What You Should Know

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NXP Semiconductors (NXPI - Free Report) closed at $227.35 in the latest trading session, marking a +0.26% move from the prior day. The stock lagged the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

Heading into today, shares of the chipmaker had gained 2.86% over the past month, outpacing the Computer and Technology sector's gain of 0.29% and the S&P 500's gain of 0.87% in that time.

Investors will be hoping for strength from NXP Semiconductors as it approaches its next earnings release. On that day, NXP Semiconductors is projected to report earnings of $3.01 per share, which would represent year-over-year growth of 12.31%. Meanwhile, our latest consensus estimate is calling for revenue of $3 billion, up 19.73% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.58 per share and revenue of $11.03 billion. These totals would mark changes of +34.78% and +28.02%, respectively, from last year.

Any recent changes to analyst estimates for NXP Semiconductors should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NXP Semiconductors is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that NXP Semiconductors has a Forward P/E ratio of 21.48 right now. This represents a discount compared to its industry's average Forward P/E of 25.78.

Investors should also note that NXPI has a PEG ratio of 0.98 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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