Back to top

Image: Bigstock

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

Read MoreHide Full Article

NXP Semiconductors (NXPI - Free Report) closed at $198.43 in the latest trading session, marking a -0.91% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%.

Coming into today, shares of the chipmaker had gained 2.73% in the past month. In that same time, the Computer and Technology sector gained 6.01%, while the S&P 500 gained 1.35%.

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.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. NXPI currently has a Zacks Rank of #2 (Buy).

Digging into valuation, NXPI currently has a Forward P/E ratio of 20.82. Its industry sports an average Forward P/E of 26.48, so we one might conclude that NXPI is trading at a discount comparatively.

Meanwhile, NXPI's PEG ratio is currently 2.08. 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 2.08 based on yesterday's closing prices.

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

To follow NXPI in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

NXP Semiconductors N.V. (NXPI) - free report >>

Published in