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

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In the latest market close, NXP Semiconductors (NXPI - Free Report) reached $244.92, with a +1.62% movement compared to the previous day. This change outpaced the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.

The chipmaker's stock has dropped by 4.37% in the past month, falling short of the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 2.57%.

Analysts and investors alike will be keeping a close eye on the performance of NXP Semiconductors in its upcoming earnings disclosure. The company's earnings report is set to go public on April 29, 2024. The company's upcoming EPS is projected at $3.18, signifying a 0.31% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.13 billion, indicating a 0.17% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.79 per share and revenue of $13.27 billion, indicating changes of -1.57% and -0.06%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NXP Semiconductors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, NXP Semiconductors holds a Zacks Rank of #3 (Hold).

Looking at its valuation, NXP Semiconductors is holding a Forward P/E ratio of 17.48. This expresses a discount compared to the average Forward P/E of 33.22 of its industry.

It's also important to note that NXPI currently trades at a PEG ratio of 0.81. 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 had an average PEG ratio of 2.94 as trading concluded yesterday.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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