In the latest trading session, NXP Semiconductors (NXPI) closed at $223.23, marking a -2.84% move from the previous day. This move lagged the S&P 500's daily loss of 1.16%. Elsewhere, the Dow saw a downswing of 0.47%, while the tech-heavy Nasdaq depreciated by 1.81%.
Shares of the chipmaker have appreciated by 21.83% over the course of the past month, outperforming the Computer and Technology sector's gain of 1%, and the S&P 500's gain of 1.03%.
Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is expected to report EPS of $3.3, up 3.77% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.3 billion, showing a 6.12% escalation compared to the year-ago quarter.
NXPI's full-year Zacks Consensus Estimates are calling for earnings of $11.77 per share and revenue of $12.23 billion. These results would represent year-over-year changes of -10.08% and -3.05%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for NXP Semiconductors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 has moved 0.04% higher. As of now, NXP Semiconductors holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NXP Semiconductors has a Forward P/E ratio of 19.52 right now. This signifies a discount in comparison to the average Forward P/E of 42 for its industry.
We can also see that NXPI currently has a PEG ratio of 2.97. 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 average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.19 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
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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NXP Semiconductors N.V. (NXPI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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