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

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NXP Semiconductors (NXPI - Free Report) closed the most recent trading day at $192.42, moving +1.4% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.17%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 0.18%.

Heading into today, shares of the chipmaker had gained 1.15% over the past month, outpacing the Computer and Technology sector's loss of 1.7% and the S&P 500's gain of 0.88% in that time.

Investors will be hoping for strength from NXP Semiconductors as it approaches its next earnings release. On that day, NXP Semiconductors is projected to report earnings of $3.18 per share, which would represent year-over-year growth of 37.66%. Our most recent consensus estimate is calling for quarterly revenue of $3.1 billion, up 20.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.95 per share and revenue of $12.74 billion. These totals would mark changes of +27.59% and +15.11%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NXP Semiconductors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NXP Semiconductors currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that NXP Semiconductors has a Forward P/E ratio of 14.66 right now. This represents a discount compared to its industry's average Forward P/E of 18.4.

Meanwhile, NXPI's PEG ratio is currently 0.67. 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 industry currently had an average PEG ratio of 1.1 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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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