NXP Semiconductors (NXPI) closed the most recent trading day at $241.15, moving +1.37% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.65% for the day. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.82%.
The chipmaker's shares have seen an increase of 2.61% over the last month, surpassing the Computer and Technology sector's loss of 1.6% and the S&P 500's gain of 1.15%.
The investment community will be paying close attention to the earnings performance of NXP Semiconductors in its upcoming release. It is anticipated that the company will report an EPS of $3.3, marking a 3.77% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.3 billion, up 6.12% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.77 per share and a revenue of $12.23 billion, indicating changes of -10.08% and 0%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for NXP Semiconductors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% increase. As of now, NXP Semiconductors holds a Zacks Rank of #2 (Buy).
From a valuation perspective, NXP Semiconductors is currently exchanging hands at a Forward P/E ratio of 17.42. This expresses a discount compared to the average Forward P/E of 40.08 of its industry.
It's also important to note that NXPI currently trades at a PEG ratio of 2.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NXPI's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 33, finds itself in the top 14% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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