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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 the most recent trading day at $125.70, moving +0.76% from the previous trading session. This change lagged the S&P 500's 1.27% gain on the day. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.87%.

Prior to today's trading, shares of the chipmaker had gained 1.64% over the past month. This has outpaced the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 0.37% in that time.

Wall Street will be looking for positivity from NXPI as it approaches its next earnings report date. The company is expected to report EPS of $1.10, down 54.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, down 11.6% from the prior-year quarter.

NXPI's full-year Zacks Consensus Estimates are calling for earnings of $4.83 per share and revenue of $7.97 billion. These results would represent year-over-year changes of -46.33% and -10.18%, respectively.

Any recent changes to analyst estimates for NXPI should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 is currently a Zacks Rank #3 (Hold).

Looking at its valuation, NXPI is holding a Forward P/E ratio of 25.85. This valuation marks a discount compared to its industry's average Forward P/E of 32.64.

Meanwhile, NXPI's PEG ratio is currently 2.59. 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.19 at yesterday's closing price.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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