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NXP Semiconductors (NXPI) Declines More Than Market: Some Information for Investors

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The latest trading session saw NXP Semiconductors (NXPI - Free Report) ending at $206.90, denoting a -1.49% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 0.83%.

Shares of the chipmaker witnessed a gain of 12.39% over the previous month, beating the performance of the Computer and Technology sector with its gain of 8.67% and the S&P 500's gain of 5.17%.

Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. In that report, analysts expect NXP Semiconductors to post earnings of $2.66 per share. This would mark a year-over-year decline of 16.88%. Meanwhile, our latest consensus estimate is calling for revenue of $2.9 billion, down 7.26% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.51 per share and a revenue of $11.97 billion, indicating changes of -12.07% and -5.09%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for NXP Semiconductors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.26% fall in the Zacks Consensus EPS estimate. NXP Semiconductors is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, NXP Semiconductors currently has a Forward P/E ratio of 18.24. This denotes a discount relative to the industry's average Forward P/E of 36.79.

Meanwhile, NXPI's PEG ratio is currently 2.27. 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 2.06 at yesterday's closing price.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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