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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 $166.37, moving +0.78% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.5%.

Prior to today's trading, shares of the chipmaker had gained 13.97% over the past month. This has outpaced the Computer and Technology sector's gain of 4.61% and the S&P 500's gain of 5.42% in that time.

Investors will be hoping for strength from NXPI as it approaches its next earnings release. On that day, NXPI is projected to report earnings of $2.10 per share, which would represent a year-over-year decline of 12.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.45 billion, up 6.6% from the year-ago period.

NXPI's full-year Zacks Consensus Estimates are calling for earnings of $6.03 per share and revenue of $8.56 billion. These results would represent year-over-year changes of -33% and -3.6%, respectively.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NXPI currently has a Zacks Rank of #3 (Hold).

In terms of valuation, NXPI is currently trading at a Forward P/E ratio of 27.36. This valuation marks a discount compared to its industry's average Forward P/E of 34.78.

It is also worth noting that NXPI currently has a PEG ratio of 2.74. 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. NXPI's industry had an average PEG ratio of 2.61 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% 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.

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