In the latest close session, NXP Semiconductors (NXPI) was up +2.74% at $228.50. The stock exceeded the S&P 500, which registered a gain of 0.46% for the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.45%.
Shares of the chipmaker witnessed a loss of 6.4% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0%, and underperforming the S&P 500’s gain of 2%.
Market participants will be closely following the financial results of NXP Semiconductors in its upcoming release. In that report, analysts expect NXP Semiconductors to post earnings of $4.13 per share. This would mark year-over-year growth of 32.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.76 billion, up 18.52% from the year-ago period.
NXPI’s full-year Zacks Consensus Estimates are calling for earnings of $15.15 per share and revenue of $14.23 billion. These results would represent year-over-year changes of +28.28% and +15.98%, respectively.
Investors might also notice recent changes to analyst estimates for NXP Semiconductors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Currently, NXP Semiconductors is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, NXP Semiconductors is currently trading at a Forward P/E ratio of 14.68. This denotes a discount relative to the industry average Forward P/E of 33.03.
We can additionally observe that NXPI currently boasts a PEG ratio of 0.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. NXPI’s industry had an average PEG ratio of 0.69 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 24, which puts it in the top 10% of all 250+ industries.
