NXP Semiconductors (NXPI) Rises But Trails Market: What Investors Should Know

In the latest trading session, NXP Semiconductors (NXPI) closed at $193.39, marking a +1.06% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.15%. On the other hand, the Dow registered a gain of 1.38%, and the technology-centric Nasdaq increased by 1.38%.

Shares of the chipmaker witnessed a loss of 17.61% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.27%, and the S&P 500's loss of 5.69%.

Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.98, signifying a 12.88% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.12 billion, up 9.99% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.93 per share and revenue of $13.44 billion, indicating changes of +17.95% and +9.58%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for NXP Semiconductors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Right now, NXP Semiconductors possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, NXP Semiconductors is holding a Forward P/E ratio of 13.74. Its industry sports an average Forward P/E of 34.55, so one might conclude that NXP Semiconductors is trading at a discount comparatively.

It's also important to note that NXPI currently trades at a PEG ratio of 0.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 1.17 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 50, placing it within the top 21% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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