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

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NXP Semiconductors (NXPI - Free Report) closed at $180.43 in the latest trading session, marking a -1.84% move from the prior day. This change lagged the S&P 500's daily gain of 0.6%. Meanwhile, the Dow gained 1.46%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Coming into today, shares of the chipmaker had lost 2.24% in the past month. In that same time, the Computer and Technology sector lost 6.45%, while the S&P 500 lost 0.8%.

Investors will be hoping for strength from NXPI as it approaches its next earnings release. The company is expected to report EPS of $2.21, up 8.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.55 billion, up 26.4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.37 per share and revenue of $10.46 billion, which would represent changes of +19.36% and +21.51%, respectively, from the prior year.

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.

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.

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. 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 19.61. This represents a discount compared to its industry's average Forward P/E of 27.73.

It is also worth noting that NXPI currently has a PEG ratio of 1.96. 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 1.71 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 51, putting it in the top 20% 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.

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


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