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

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In the latest trading session, NXP Semiconductors (NXPI - Free Report) closed at $207.85, marking a -0.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%.

Coming into today, shares of the chipmaker had gained 8.8% in the past month. In that same time, the Computer and Technology sector lost 0.49%, while the S&P 500 gained 0.58%.

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 $2.31 per share, which would represent year-over-year growth of 230%. Meanwhile, our latest consensus estimate is calling for revenue of $2.57 billion, up 41.54% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.62 per share and revenue of $10.55 billion. These totals would mark changes of +22.55% and +22.53%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NXPI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NXPI is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, NXPI is currently trading at a Forward P/E ratio of 21.62. This represents a discount compared to its industry's average Forward P/E of 26.1.

Also, we should mention that NXPI has a PEG ratio of 2.16. 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 2.11 at yesterday's closing price.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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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