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NXP Semiconductors (NXPI) Gains As Market Dips: What You Should Know

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NXP Semiconductors (NXPI - Free Report) closed at $156.84 in the latest trading session, marking a +0.86% move from the prior day. This move outpaced the S&P 500's daily loss of 0.39%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the chipmaker had gained 2.75% in the past month. In that same time, the Computer and Technology sector gained 7.06%, while the S&P 500 gained 4.06%.

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 $2.03 per share. This would mark a year-over-year decline of 15.77%. Meanwhile, our latest consensus estimate is calling for revenue of $2.45 billion, up 6.6% from the prior-year quarter.

NXPI's full-year Zacks Consensus Estimates are calling for earnings of $5.88 per share and revenue of $8.56 billion. These results would represent year-over-year changes of -34.67% and -3.6%, respectively.

Any recent changes to analyst estimates for NXPI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. NXPI is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, NXPI is holding a Forward P/E ratio of 26.44. For comparison, its industry has an average Forward P/E of 35.78, which means NXPI is trading at a discount to the group.

Investors should also note that NXPI has a PEG ratio of 2.64 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.64 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 53, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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