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NXP Semiconductors (NXPI) Stock Dips While Market Gains: Key Facts

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NXP Semiconductors (NXPI - Free Report) ended the recent trading session at $225.98, demonstrating a -1.29% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.46%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.57%.

The stock of chipmaker has risen by 19.51% in the past month, leading the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 4.22%.

Analysts and investors alike will be keeping a close eye on the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.3, indicating a 3.77% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.3 billion, reflecting a 6.12% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.77 per share and revenue of $12.23 billion, indicating changes of -10.08% and -3.05%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NXP Semiconductors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

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.

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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Right now, NXP Semiconductors possesses a Zacks Rank of #3 (Hold).

With respect to valuation, NXP Semiconductors is currently being traded at a Forward P/E ratio of 19.45. For comparison, its industry has an average Forward P/E of 44.41, which means NXP Semiconductors is trading at a discount to the group.

Investors should also note that NXPI has a PEG ratio of 2.95 right now. 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. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.5.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 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.

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


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