In the latest trading session, NXP Semiconductors (NXPI) closed at $205.25, marking a +1.74% move from the previous day. This change outpaced the S&P 500's 0.83% gain on the day. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, added 1.38%.
Shares of the chipmaker witnessed a loss of 10.07% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.51%, and the S&P 500's loss of 2.65%.
The investment community will be paying close attention to the earnings performance of NXP Semiconductors in its upcoming release. In that report, analysts expect NXP Semiconductors to post earnings of $2.98 per share. This would mark year-over-year growth of 12.88%. Meanwhile, our latest consensus estimate is calling for revenue of $3.12 billion, up 9.99% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.93 per share and a revenue of $13.44 billion, indicating changes of +17.95% and +9.58%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for NXP Semiconductors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.8% higher. NXP Semiconductors presently features a Zacks Rank of #2 (Buy).
In terms of valuation, NXP Semiconductors is currently trading at a Forward P/E ratio of 14.49. This indicates a discount in contrast to its industry's Forward P/E of 38.27.
We can also see that NXPI currently has a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 1.2.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 42, finds itself in the top 18% echelons of all 250+ industries.
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.
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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