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

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In the latest trading session, NXP Semiconductors (NXPI - Free Report) closed at $203.57, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily gain of 0.18%.

Coming into today, shares of the chipmaker had gained 4.61% in the past month. In that same time, the Computer and Technology sector gained 6.46%, while the S&P 500 gained 2.43%.

NXPI will be looking to display strength as it nears 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, the Zacks Consensus Estimate for revenue is projecting net sales of $2.57 billion, up 41.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.62 per share and revenue of $10.55 billion, which would represent changes of +22.55% and +22.53%, respectively, from the prior year.

Any recent changes to analyst estimates for NXPI should also be noted by investors. 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. 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 is currently a Zacks Rank #2 (Buy).

Investors should also note NXPI's current valuation metrics, including its Forward P/E ratio of 20.91. This represents a discount compared to its industry's average Forward P/E of 27.63.

Investors should also note that NXPI has a PEG ratio of 2.09 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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