NXP Semiconductors (NXPI) closed at $219.84 in the latest trading session, marking a +0.87% move from the prior day. The stock’s change was more than the S&P 500’s daily gain of 0.82%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 1.77%.
Heading into today, shares of the chipmaker had lost 3.05% over the past month, lagging the Computer and Technology sector’s gain of 1.43% and the S&P 500’s gain of 0.8% in that time.
The upcoming earnings release of NXP Semiconductors will be of great interest to investors. The company is expected to report EPS of $3.14, down 15.36% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.1 billion, indicating a 9.43% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.04 per share and revenue of $12.6 billion. These totals would mark changes of -6.92% and -5.08%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for NXP Semiconductors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.87% lower within the past month. NXP Semiconductors is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, NXP Semiconductors is currently exchanging hands at a Forward P/E ratio of 16.72. This signifies a discount in comparison to the average Forward P/E of 38.66 for its industry.
It is also worth noting that NXPI currently has a PEG ratio of 3.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Semiconductor – Analog and Mixed was holding an average PEG ratio of 3.14 at yesterday’s closing price.
