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

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NXP Semiconductors (NXPI - Free Report) closed the most recent trading day at $211.50, moving -1.69% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day.

Heading into today, shares of the chipmaker had gained 2.18% over the past month, lagging the Computer and Technology sector's gain of 4.78% and the S&P 500's gain of 3.02% 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 $2.74, up 61.18% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.85 billion, up 25.71% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.31 per share and revenue of $10.91 billion, which would represent changes of +31.34% and +26.65%, respectively, from the prior year.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.97% higher. NXPI currently has a Zacks Rank of #2 (Buy).

In terms of valuation, NXPI is currently trading at a Forward P/E ratio of 20.88. This valuation marks a discount compared to its industry's average Forward P/E of 24.38.

Meanwhile, NXPI's PEG ratio is currently 2.09. 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 1.1 at yesterday's closing price.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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