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NXP Semiconductors (NXPI) Dips More Than Broader Markets: What You Should Know

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NXP Semiconductors (NXPI - Free Report) closed at $201.15 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%.

Heading into today, shares of the chipmaker had gained 2.06% over the past month, lagging the Computer and Technology sector's gain of 2.81% and outpacing the S&P 500's gain of 1.68% 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 $2.31, up 230% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 41.54% from the year-ago period.

NXPI's full-year Zacks Consensus Estimates are calling for earnings of $9.62 per share and revenue of $10.55 billion. These results would represent year-over-year changes of +22.55% and +22.53%, 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. NXPI currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that NXPI has a Forward P/E ratio of 21 right now. This valuation marks a discount compared to its industry's average Forward P/E of 26.41.

Also, we should mention that NXPI has a PEG ratio of 2.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.1 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 28, 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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