In the latest trading session, NXP Semiconductors (NXPI) closed at $215.25, marking a -4.23% move from the previous day. This change lagged the S&P 500's 0.94% loss on the day. Elsewhere, the Dow saw a downswing of 0.83%, while the tech-heavy Nasdaq depreciated by 1.02%.
The stock of chipmaker has fallen by 2.74% in the past month, leading the Computer and Technology sector's loss of 4.34% and undershooting the S&P 500's loss of 1.3%.
Analysts and investors alike will be keeping a close eye on the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.98, showcasing a 12.88% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.12 billion, up 10.12% from the year-ago period.
NXPI's full-year Zacks Consensus Estimates are calling for earnings of $13.92 per share and revenue of $13.46 billion. These results would represent year-over-year changes of +17.87% and +9.69%, respectively.
Any recent changes to analyst estimates for NXP Semiconductors should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 has shifted 2.53% upward. Right now, NXP Semiconductors possesses a Zacks Rank of #3 (Hold).
In the context of valuation, NXP Semiconductors is at present trading with a Forward P/E ratio of 16.15. This represents a discount compared to its industry average Forward P/E of 44.85.
Also, we should mention that NXPI has a PEG ratio of 0.9. 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 average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 1.37 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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