Back to top

Image: Bigstock

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

Read MoreHide Full Article

NXP Semiconductors (NXPI - Free Report) closed the most recent trading day at $198.35, moving -1.68% from the previous trading session. This change lagged the S&P 500's daily gain of 0.34%.

Prior to today's trading, shares of the chipmaker had gained 1.76% over the past month. This has lagged the Computer and Technology sector's gain of 5.91% and the S&P 500's gain of 2.71% in that time.

NXPI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.31, up 230% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.57 billion, up 41.54% from the year-ago period.

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.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 #3 (Hold).

Valuation is also important, so investors should note that NXPI has a Forward P/E ratio of 20.98 right now. For comparison, its industry has an average Forward P/E of 26.79, which means NXPI is trading at a discount to the group.

It is also worth noting that NXPI currently has a PEG ratio of 2.1. 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 88, putting it in the top 35% 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.

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


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