NXP Semiconductors (NXPI) ended the recent trading session at $224.61, demonstrating a -1.88% change from the preceding day's closing price. This change lagged the S&P 500's 0.14% gain on the day. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.27%.
The chipmaker's shares have seen an increase of 8.54% over the last month, surpassing the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%.
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 July 21, 2025. The company's earnings per share (EPS) are projected to be $2.66, reflecting a 16.88% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.9 billion, indicating a 7.26% decline compared to the corresponding quarter of the prior year.
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 note any recent changes to analyst estimates for NXP Semiconductors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NXP Semiconductors is currently sporting a Zacks Rank of #4 (Sell).
Looking at valuation, NXP Semiconductors is presently trading at a Forward P/E ratio of 19.89. This signifies a discount in comparison to the average Forward P/E of 39.33 for its industry.
Also, we should mention that NXPI has a PEG ratio of 2.48. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 173, placing it within the bottom 30% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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NXP Semiconductors N.V. (NXPI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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