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NXP Semiconductors (NXPI) Outpaces Stock Market Gains: What You Should Know

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NXP Semiconductors (NXPI - Free Report) closed the most recent trading day at $128.20, moving +1.94% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.75%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 1.4%.

Coming into today, shares of the chipmaker had gained 5.55% in the past month. In that same time, the Computer and Technology sector lost 2.52%, while the S&P 500 gained 7%.

Wall Street will be looking for positivity from NXPI as it approaches its next earnings report date. In that report, analysts expect NXPI to post earnings of $1.10 per share. This would mark a year-over-year decline of 54.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2 billion, down 11.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.83 per share and revenue of $7.97 billion, which would represent changes of -46.33% and -10.18%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NXPI. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NXPI currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, NXPI is holding a Forward P/E ratio of 26.06. Its industry sports an average Forward P/E of 34.73, so we one might conclude that NXPI is trading at a discount comparatively.

It is also worth noting that NXPI currently has a PEG ratio of 2.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.41 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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